Decreases in Equity That Represent Costs of Providing Products or Services

question 49

Multiple Choice

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

• A)Liabilities.
• B)Equity.
• C)Dividends.
• D)Expenses.
• E)Common Stock.

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Definitions:

Invests

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Note Payable

A written promise to pay a specified amount of money, along with interest, by a certain date.

Cash Payment

A transaction in which money is paid out or disbursed immediately in cash.

Fees Earned

Revenue generated from providing services, recognized when the service is performed regardless of when the payment is received.