Question
Which of the following is a true statement? Answer
Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. Both revenue accounts and expense accounts are subsets of contributed capital. Both revenue accounts and expense accounts are subsets of retained earnings. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Which of the following is a true statement? Which of the following is a true statement? Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. Both revenue accounts and expense accounts are subsets of contributed capital. Both revenue accounts and expense accounts are subsets of retained earnings. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. Both revenue accounts and expense accounts are subsets of contributed capital. Both revenue accounts and expense accounts are subsets of retained earnings. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable.
Explanation / Answer
Both revenue accounts and expense accounts are subsets of retained earnings. Both revenue accounts and expense accounts are subsets of retained earnings.