Which of the Following Is a True Statement

question 55

Multiple Choice

Which of the following is a true statement?

• A)Revenue accounts are a subset of assets,and expense accounts are a subset of liabilities.
• B)Both revenue accounts and expense accounts are subsets of contributed capital.
• C)Both revenue accounts and expense accounts are subsets of retained earnings.
• D)Revenue accounts are a subset of cash,and expense accounts are a subset of accounts payable.

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Definitions:

Wage And Tax Statement

A form, typically referred to as a W-2 form in the United States, that employers provide to employees detailing the employee's annual wages and the amount of taxes withheld from their paycheck.

Tax Liability Accounts

Financial accounts that track the amount of tax that a person or organization owes to the government.

General Checking Account

A type of bank account that allows for the deposit and withdrawal of funds for daily transactions.

Practice's Savings

Refers to the financial reserves or accumulated funds saved by a business or practice.