Revenue
Revenue increases equity. Under accrual accounting it is recorded when earned, which may be before or after cash is received. Revenue accounts normally carry credit balances and are closed at period end.
Example
A completed $900 repair is revenue even if the customer pays next week.
Learn and practice it
The five account types — Assets, liabilities, equity, revenue, and expenses — what each account type means, with clear examples and a classification drill.
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