Which of the Following Stockholders' Equity Accounts Follows the Same

question 21

Multiple Choice

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

• A) expense accounts only
• B) dividends accounts only
• C) revenue, common stock, and retained earnings accounts
• D) expense and dividends accounts

---

Definitions:

One-Year

A period of time consisting of 12 consecutive months.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Contribution Format

An income statement format that separates fixed and variable costs, showing contribution margin which is sales revenue minus variable costs.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to covering fixed costs.