Which of the following items is reported on the income statement as an expense?
A)This month's cash sales
B)The purchase of supplies
C)This month's utility bill
D)The purchase of land

Question

Quizplus · Accepted Answer

An expense is recorded in the same period as the revenues to which it relates or,if it cannot be directly associated with revenues,it is recorded in the period that the underlying business activity occurs.Payment of this month's utility bill would be shown on the income statement as an expense since the underlying business activity occurred during this time.Cash sales are reported as revenues.Purchases of land or supplies would be reported on the balance sheet as increases in assets.

Which of the Following Items Is Reported on the Income