Expenses Are Decreases in Retained Earnings That Result from Operations

question 184

True/False

Expenses are decreases in retained earnings that result from operations.

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Definitions:

Store Equipment

Assets such as shelving, registers, computers, and other machinery used in the operation of a retail store.

Accounts Payable

Short-term liabilities representing the amount a company owes to suppliers or creditors for goods and services received but not yet paid for.

Accounts Receivable

Outstanding payments from customers to a firm for delivered goods or services awaiting payment.

Service Revenue

Represents the income earned by a company from its business activities, such as the sale of services, before any expenses are deducted.