Which of the following events does not result in the recording of an expense?
A) Withdrawal of cash by the owner
B) Purchase of gasoline for fill-up of a company car
C) Receipt of a bill from the telephone company
D) Payment of wages

Question

Quizplus · Accepted Answer

Withdrawing cash by the owner is not an expense- it can be considered as a withdrawal of funds from the company account which does not affect the income statement. The other options all involve the purchase or payment for goods/services which result in expenses that will be recorded in the income statement.

Which of the Following Events Does Not Result in the Recording