An Expense Account Is a Subdivision of the Retained Earnings

question 29

True/False

An expense account is a subdivision of the retained earnings account and decreases shareholders' equity.

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Definitions:

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the fossilized remains of ancient plants and animals.

Coal

A combustible black or brownish-black sedimentary rock used primarily as a fuel in the production of electricity and heat, formed from plant remains over millions of years.

Oil

A viscous liquid derived from petroleum, used as fuel and in the manufacture of various goods.

Natural Gas

An energy-producing fossil fuel that predominantly contains methane, utilized for heating, cooking, and generating electricity.