An Example of an Expense, as Defined in the Conceptual

question 5

Multiple Choice

An example of an expense, as defined in the Conceptual Framework, is:

• A) Payment to a supplier for purchases made on credit.
• B) Dividends paid to shareholders.
• C) Cash purchase of office equipment.
• D) Wages paid on a weekly-basis to employees.

---

Definitions:

Effectiveness

The ability of an entity or process to achieve its goals or intended results with a minimal amount of waste, expense, or unnecessary effort.

Customer Satisfaction

The measure of how products or services provided by a company meet or exceed the expectations of its customers.

RFID

Short for Radio-Frequency Identification, a technology used for tagging and identification of items using radio waves, commonly used in tracking inventory and assets.

Procurement Processes

The activities involved in obtaining goods or services, including selection, purchasing, and contract management, to meet organizational needs.