Which of the Following Is True About Expenses

question 106

Multiple Choice

Which of the following is true about expenses?

• A) Expenses are not reported if they are not paid.
• B) Expenses are reported in the period in which they are incurred to generate revenue.
• C) Expenses increase stockholders' equity.
• D) Expenses are only reported in the period they are paid

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Definitions:

Hourly Rate

Refers to the amount of money paid for each hour of work.

Compensation

Payment or benefits given to employees, contractors, or other stakeholders in exchange for their services or to cover specific expenses.

Data Driven

Decision-making processes, strategies, or approaches that prioritize and utilize data analysis and evidence over intuition or personal experience.

Manager Compensation

entails the payment and benefits received by a manager, including salary, bonuses, and incentives.