In an expanded accounting equation,revenues and expenses are an expanded part of:
A)Retained Earnings.
B)Common Stock.
C)Liabilities.
D)Assets.

Name: In an expanded accounting equation,revenues and expenses are an expanded part of: A)Retained Earnings. B)Common Stock. C)Liabilities. D)Assets.
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Question

Quizplus · Accepted Answer

Think of revenues and expenses as subcategories within retained earnings.They are shown this way because revenues and expenses eventually flow into Retained Earnings,but they aren't initially recorded there.

In an Expanded Accounting Equation,revenues and Expenses Are an Expanded