Revenue, Expenses, and Withdrawals Are Subdivisions Of

question 67

Multiple Choice

Revenue, Expenses, and withdrawals are subdivisions of:

• A) Assets.
• B) Liabilities.
• C) Owner's Equity.
• D) All of these answers are correct.

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Definitions:

Cost of Goods Sold

This refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Receivables Turnover

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times receivables are turned over during a period.

Payables Turnover

A financial ratio that measures how fast a company pays its suppliers, calculated as the cost of sales divided by average accounts payable.