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Melanie
Lv 5
Melanie asked in Business & FinanceOther - Business & Finance · 1 decade ago

Why is an increase in revenue listed as credit?

Update:

and why is cash also credited ? what does it fall under.. ?

1 Answer

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  • Sandy
    Lv 7
    1 decade ago
    Favorite Answer

    Liabilities, equity and revenue have normal credit balances. So anytime you earned some revenue, you credit the revenue account (you debit cash or AR, depending on whether it's a cash or credit sale). If the customer returned the goods, you want to decrease revenue, and that's when you debit the revenue account.

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