Expenses can result from
A) paying dividends
B) consuming services
C) using up liabilities
D) all of these

Question

Quizplus · Accepted Answer

Expenses are costs incurred by a business to generate revenue. These costs can arise from consuming services, such as rent, wages, utilities, etc. Paying dividends is a distribution of profits, and while it may reduce the amount of cash available for future investments, it is not considered an expense. Using up liabilities is not an accurate description of expenses, as liabilities are amounts owed by a business and typically not related to generating revenue.

Expenses Can Result from