Which of the Following Best Describes the Term "Expenses

question 57

Multiple Choice

Which of the following best describes the term "expenses"?

• A)The cost of assets used in the investing activities of a business.
• B)The amount of interest or claim that the owners have in the business.
• C)The future economic resources of a business entity.
• D)The cost of assets used in the operations of a business.

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Definitions:

Payback Period

The duration of time it takes for an investment to generate an amount of income or cash flow equal to the cost of the investment.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Old Equipment

Refers to machinery or technology that has become outdated or has surpassed its effective service life but may still be in use.

Salvage Value

The projected remaining worth of an asset once it has reached the end of its operational lifespan.