Which of the Following Is a Definition of Expenses That

question 2

Multiple Choice

Which of the following is a definition of expenses that clearly represents an asset-liability approach?

• A)Expenses are outflows or other using up of assets or incurrence of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's major or central operations.
• B)Expenses are costs directly associated with the revenue of the period.
• C)Expenses are gross decreases in assets or gross increases in liabilities recognized and measured in conformity with generally accepted accounting principles that result from those types of profit-directed activities of an enterprise.
• D)Expenses in the broadest sense include all expired costs which are deductible from revenues.

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Definitions:

Conceal Assets

The act of hiding valuable resources or property, often to avoid seizure, taxation, or inclusion in bankruptcy filings.

Involuntary Bankruptcy

This is a legal process initiated by creditors against a debtor, rather than the debtor filing for bankruptcy voluntarily, forcing them into bankruptcy to satisfy debts.

Creditors

Persons or organizations that are owed money by borrowers.

Bankruptcy Proceedings

The legal process through which individuals or businesses that are unable to repay their debts can seek relief from some or all of their financial obligations.