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WAEC SSCE - Financial Accounting - 2006 (Objective)

Question 1 Report

Which of the following is not a revenue account?
Answer Details
The account that is not a revenue account is "purchases." Revenue accounts are used to track all the income earned by a company. The four options provided in the question are all related to revenue except for "purchases." Purchases refer to the amount of money spent by a company to acquire goods or services for resale or use in the operation of the business. It is an expense account and not a revenue account. In simpler terms, revenue accounts are for tracking money earned by a company, while the purchases account is for tracking money spent by the company.
Read lesson note on Nature And Significance Of Accounting (JAMB)
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