Which of the following events does NOT give rise to an expense?
A) A building depreciated by $600.
B) A customer paid $600 on account.
C) The company promised to pay an employee $600 in wages at a later stage.
D) A customer returned goods valued at $200 previously purchased.

Question

Quizplus · Accepted Answer

A payment received from a customer does not give rise to an expense for the company. The other options all involve a reduction in assets or an obligation to pay out funds, which result in expenses for the company.

Which of the Following Events Does NOT Give Rise to an Expense