Decreases in stockholders' equity that are due to the cost of operating the business are:
A)assets.
B)revenues.
C)expenses.
D)liabilities.

Question

Quizplus · Accepted Answer

Expenses are the costs of operating a business and are deducted from revenues to arrive at net income. Decreases in stockholders' equity due to expenses are a normal part of a business's operations. Assets and liabilities are different types of financial statements and do not directly affect stockholders' equity. Revenues increase stockholders' equity.

Decreases in Stockholders' Equity That Are Due to the Cost