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When a revenue account such as Fees Earned increases because income is earned, the account is:
Adebited
Bcredited
Cleft blank
Dreversed
Answer & Solution
Correct answer: B. credited
1. The rule states: credit revenue when you earn it, because revenue increases.
2. Earning a fee increases the Fees Earned balance.
3. An increase in revenue is recorded on the credit side, not the debit side.
4. Therefore the revenue account is credited.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.3.2 "Rules of Debit and Credit", p.13_
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