Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A)An expense is a cost incurred to generate revenues.
• B)Expenses are reported on the income statement as they are incurred.
• C)Revenues are reported on the income statement as they are earned.
• D)Revenues result in an increase in net assets, net income, and contributed capital.

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Definitions:

Customers Served

The number of unique clients or customers that a business has provided products or services to within a specific period.

Variance

The difference between planned or expected results and actual results in financial and operational metrics.

Budgeting

The process of creating a plan to spend your money, creating an estimate of revenues and expenses over a specified period.

Revenue and Spending Variances

The difference between projected and actual figures for income and expenditures, used to manage and adjust financial planning.