Expenses can result from:
A) increasing owner's equity.
B) consuming services.
C) using up liabilities.
D) all are true.

Question

Quizplus · Accepted Answer

Expenses are costs incurred by a business in order to generate revenue, and these costs are typically related to consuming services or using up assets. Therefore, option B is the most accurate answer. Option A is incorrect because increasing owner's equity is a result of generating profit, not incurring expenses. Option C is also incorrect because liabilities are not typically used up through expenses; rather, they are settled over time through the use of assets.

Expenses Can Result From