Expenses are shown on the
A)income statement.
B)balance sheet.
C)statement of changes in stockholders' equity.
D)the income statement and the statement of changes in stockholders' equity.

Question

Quizplus · Accepted Answer

Expenses are typically shown on the income statement, which summarizes a business's revenues, costs, and profits (or losses) for a period. The balance sheet, on the other hand, shows a snapshot of the company's assets, liabilities, and equity at a specific date, while the statement of changes in stockholders' equity shows how the equity section of the balance sheet changed over time due to various transactions. However, some expenses, such as prepaid expenses, may appear on the balance sheet as assets until they are consumed.

Expenses Are Shown on the