Expenses Can Be Defined As

question 98

Multiple Choice

Expenses can be defined as:

• A) assets consumed.
• B) services used in the process of generating revenues.
• C) costs that have been incurred during the normal course of business.
• D) all of these.

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Definitions:

Net Investment

The total amount invested in a project or asset after deducting depreciation or other capital allowances.

MACRS Depreciation

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation in the U.S. that allows for the accelerated write-off of property under certain conditions.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Depreciation Schedule

A table that shows the decline in value of an asset over time, which impacts financial and tax reporting.