This was a question on an accounting exam and I initially chose true which turned out to be the correct answer. What threw me and caused me to change my answer to false was the fact that the absolute word of ‘always’ was used which typically indicates a false answer. I am in search of a case or example which proves to be an exception, allowing me to dispute this question and get credit through some technicality.
Thanks
Update:
Is it possible to record a revenue equal to or less than 0?
2
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Answer:
The answer is true. When revenue is recorded, you increase your asset as well as your revenue. This revenue will ultimately be closed against the capital account (if sole proprietorship or partnership) or retained earnings (if corporation) account therefore causing your net assets to increase.
Although the word ‘always’ typically indicates false, it doesn’t apply all the time.
Source(s): My brain only.
I am thinking true. Revenue is a credit entry, therefore the offsetting entry MUST be a debit. Debits ALWAYS increase net assets.