Expense and Revenue Accounts Can Be Considered to Be Subcategories

question 61

Multiple Choice

Expense and revenue accounts can be considered to be subcategories of

• A) An asset account
• B) A liability account
• C) An owners' equity account
• D) None of these are correct

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Definitions:

Reserve Requirement Ratio

The fraction of deposits which a bank is mandated to hold in reserve, either in its own vaults or with the central bank, rather than lending to consumers.

Checkable Deposits

Bank accounts that allow the account holder to write checks or use debit cards to make payments directly from the account.

New Reserves

Resources or assets that have been newly discovered or identified, often referring to natural resources like oil, gas, or minerals that can be economically extracted.

Reserve Requirement Ratio

The fraction of deposits that banks must hold in reserve and not lend out, as mandated by the central bank.