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:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an active market or valuation models, indicating what a willing buyer and seller would agree to exchange it for.

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid or charged.

Semiannual Interest

Interest that is paid or calculated twice a year on a loan or investment.

Available-for-sale Securities

Available-for-sale securities are financial assets that are neither classified as held-to-maturity securities nor trading securities, and are recorded at fair market value on the balance sheet.