The Cost of Assets Used Up in the Process of Earning

question 35

Multiple Choice

The cost of assets used up in the process of earning revenue are considered:

• A)assets.
• B)expenses.
• C)dividends.
• D)stockholders' equity.

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Definitions:

Salaries Expense

The total amount recorded by a business for the wages and salaries paid to employees during a reporting period.

Partially Funded Pension Rights

Pension benefits that are partially backed by funding; not fully financed in advance.

Pension Expense

The cost recognized by an employer for the estimated liabilities of pension payments to retirees.

Salaries Expense

The cost incurred by a company to pay for employee services performed during a period.