Does the concept of revenue less expense equaling an increase in equity or fund balance make sense to you?

Yes, the concept of revenue less expenses resulting in an increase in equity or fund balance makes sense. It reflects the fundamental accounting equation where net income (revenue minus expenses) contributes to the overall value of a business or organization. Essentially, when a company generates more revenue than it incurs in expenses, it enhances its financial position, leading to increased equity or fund balance. This principle is crucial for assessing financial health and sustainability.