An Expense Account Is Known as a Contra Equity Account

question 40

True/False

An expense account is known as a contra equity account.

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Definitions:

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales activity, such as rent or salaries.

Lease Payments

Regular payments made by a lessee to a lessor for the use of a property, vehicle, or equipment.

Office Space

Premises leased or owned by businesses or professionals for the purpose of conducting office activities or operations.

Production Technique

The method or procedure involved in converting raw materials into finished goods or products.