Expenses can result from
A) selling stock
B) consuming services
C) using up liabilities
D) paying creditors on account

Question

Quizplus · Accepted Answer

Expenses refer to the costs incurred in consuming goods or services required to produce revenue. Choice A refers to the sale of assets and Choice C refers to the reduction in outstanding debts or obligations, neither of which represent an expense. Choice D refers to the payment of outstanding debts, which is a reduction in liabilities and not an expense.

Expenses Can Result from