Which of the following is not a revenue account?
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Correct Answer: Option B
Explanation:
Revenue accounts refer to accounts that track the income or earnings generated by a business. These include sales of goods or services, as well as other forms of income like discounts and interest.
Let’s check out the options:
A. Sales: This is a revenue account because it tracks the income earned from selling goods or services.
B. Purchases: This is not a revenue account. It is an expense account because it tracks the cost of acquiring goods or services for resale, not income.
C. Discount received: This is a revenue account because it represents income received by the business in the form of discounts from suppliers, reducing the cost of purchases.
D. Interest received: This is a revenue account because it tracks income earned from interest on investments or loans made by the business.
Revenue accounts refer to accounts that track the income or earnings generated by a business. These include sales of goods or services, as well as other forms of income like discounts and interest.
Let’s check out the options:
A. Sales: This is a revenue account because it tracks the income earned from selling goods or services.
B. Purchases: This is not a revenue account. It is an expense account because it tracks the cost of acquiring goods or services for resale, not income.
C. Discount received: This is a revenue account because it represents income received by the business in the form of discounts from suppliers, reducing the cost of purchases.
D. Interest received: This is a revenue account because it tracks income earned from interest on investments or loans made by the business.