An example of an expense is
A) investments.
B) supplies consumed.
C) prepaid insurance.
D) withdrawals by the owner.

Question

Quizplus · Accepted Answer

An expense is an outflow of resources, such as cash, to purchase goods or services that are used or consumed by a business to generate revenue. Supplies consumed are an example of an expense as they are used up in the process of operating the business. Investments, prepaid insurance, and withdrawals by the owner are not expenses as they do not represent a direct cost incurred in running the business.

An Example of an Expense Is