Which of the following accounting terms is commonly used interchangeably with 'revenue'?

• A. Expenses
• B. Liabilities
• C. Assets
• D. Sales

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the term 'revenue' in financial accounting. Revenue refers to the income generated from normal business operations, typically from the sale of goods or services.
2. Step 2: Recognize that 'sales' is a specific type of revenue. It represents the income earned directly from selling goods or services, which is why 'sales' is often used interchangeably with 'revenue'.
3. Step 3: Differentiate 'revenue' from other accounting terms provided in the options: 'expenses' (costs incurred to generate revenue), 'liabilities' (obligations owed to others), and 'assets' (resources owned by the company). These terms are not synonymous with 'revenue'.
4. Step 4: Confirm that 'sales' aligns with the definition of 'revenue' because it directly contributes to the income of the business through its core operations.
5. Step 5: Conclude that the correct answer is 'sales', as it is the term most commonly used interchangeably with 'revenue' in financial accounting.