(c) is the correct option. Earning revenue increases assets, increases the stockholders' equity. The money received from routine business activities is referred to as revenue, sales, or the top line. Revenue (from the sale of goods or services) less operational expenses equals operating income. Even when revenues are stagnant, net income might rise due to cost-cutting.
Non-operating revenue is irregular or one-time money obtained from other sources. In order to boost profit and, subsequently, earnings per share (EPS) for its stockholders, a firm raises revenues and/or reduces expenses. Based on a company's sales and net income, investors frequently make independent judgments on the operation's health.
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