An asset decrease resulting from consumption of resources to earn revenue is
A) a net loss.
B) a liability.
C) an expense.
D) an asset source transaction.

Question

Quizplus · Accepted Answer

An expense is the consumption of resources to earn revenue, resulting in a decrease in assets. Therefore, option C is the correct choice. Option A (net loss) is a result of subtracting total expenses from total revenues, and option B (liability) is a debt owed by the company, not a decrease in assets. Option D (asset source transaction) is when an asset is acquired or created, resulting in an increase in assets, which is the opposite of what is described in the question.

An Asset Decrease Resulting from Consumption of Resources to Earn