Which statement best describes Income?

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Income is the inflow from delivering goods or services that increases the business’s profits, and therefore increases owners’ equity (through retained earnings) unless that profit is distributed as dividends. This captures the essential effect: earning revenue boosts the owner’s claim on the business, not through new owner contributions but through higher accumulated earnings. It’s not about increasing liabilities, and while revenue often brings in cash or receivables, the key impact is on equity. Expenses, in contrast, reduce net income and equity. So the statement that best describes income is that it’s an increase in income that increases equity, other than owner contributions.