Expense and revenue accounts can be considered to be subcategories of

Name: Expense and revenue accounts can be considered to be subcategories of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Expense and revenue accounts are both part of the owners' equity section of the accounting equation, which represents the financial claims of the owners on the assets of the company. Expenses reduce owners' equity, while revenues increase it. Therefore, expenses and revenues are subcategories of owners' equity and not asset or liability accounts.

Expense and Revenue Accounts Can Be Considered to Be Subcategories