Expenses:
A)Increase retained earnings.
B)Are increases in retained earnings from a company's earning activity.
C)Are the costs of assets or services used to earn revenues.
D)Occur when retained earnings exceed revenue.
E)Are creditors' claims on assets.

Question

Quizplus · Accepted Answer

Expenses are the costs incurred by a company to generate revenues. They include the cost of assets or services used in the production process. Expenses are deducted from revenues to calculate a company's net income.