Which account represents Revenue?

Which account represents Revenue?

• A. Wages Expense
• B. Prepaid Rent
• C. Fees Earned
• D. Cash

Answer: (C)

Revenue is the income earned from providing goods or services to customers. In the chart of accounts, revenue accounts increase with credits and reflect the amount earned during a period. Fees Earned is a common name for a revenue account, so it directly represents the income from services rendered. Wages Expense is an expense and reduces net income; it decreases with a debit. Prepaid Rent is an asset, representing rent paid in advance and used over time. Cash is an asset, representing the money on hand or in the bank. None of these depict revenue.

Revenue is the income earned from providing goods or services to customers. In the chart of accounts, revenue accounts increase with credits and reflect the amount earned during a period. Fees Earned is a common name for a revenue account, so it directly represents the income from services rendered.

Wages Expense is an expense and reduces net income; it decreases with a debit. Prepaid Rent is an asset, representing rent paid in advance and used over time. Cash is an asset, representing the money on hand or in the bank. None of these depict revenue.