Which of the Following Is Considered to Be an Expense

question 101

Multiple Choice

Which of the following is considered to be an expense on the income statement?

• A)Accounts payable.
• B)Notes payable.
• C)Wages payable.
• D)Cost of goods sold.

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Definitions:

Closely Held Corporations

Corporate entities characterized by a small number of shareholders, with shares that do not trade on public exchanges and are often family-owned or controlled.

Limited Partnership

A business structure in which one or more of the owners may be granted limited liability as long as one partner is designated as a general partner with unlimited liability.

General Partnership

A business structure in which the business owners share the management and risk of the business.

Limited Liability

A legal structure that protects company owners' personal assets from business debts and liabilities.