Which of the following statements is correct regarding revenue and expense accounts?

Name: Which of the following statements is correct regarding revenue and expense accounts?
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Question

Quizplus · Accepted Answer

Revenue and expense accounts are indeed considered part of the owners' equity section in accounting. They directly affect the net income or loss of a business, which in turn adjusts the owner's equity (or shareholders' equity in a corporation) on the balance sheet. Revenue increases equity, while expenses decrease it.

Which of the Following Statements Is Correct Regarding Revenue and Expense