Which of the following statements is true?
A)Assets and revenues are the same thing.
B)If employees have not yet been paid for their work,the company has wages payable.
C)Retained earnings equal cash that the company has earned and kept
D)Revenue is another term for profit.
E)Revenue minus expense equals retained earnings.

Question

Quizplus · Accepted Answer

Wages payable is a liability on the balance sheet that represents employee compensation that has been earned but not yet paid. This is different from assets and revenues, which are both separate concepts. Retained earnings represent the profits that a company has kept after distributing dividends, and revenue is the income generated from the company's sales. Expense is the cost incurred to generate revenue, and retained earnings are calculated by subtracting expenses from revenue.

Which of the Following Statements Is True