Which of the Following Is the Definition of an Expense

question 5

Multiple Choice

Which of the following is the definition of an expense?

• A) Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations.
• B) Inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.
• C) Decreases in equity (net assets) from peripheral or incidental transactions of an entity except those that result from expenses or distributions to owners.
• D) Increases in equity (net assets) from peripheral or incidental transactions of an entity except those that result from revenues or investments by owners.

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Definitions:

Newspapers

Printed publications consisting of sheets of paper that contain news, articles, advertisements, and other information.

Years

Units of time consisting of 365 or 366 days, divided into 12 months, used as a measure of time passing and for historical timelines.

Power Elite Model

A theory in sociology that suggests power is concentrated in the hands of a small, elite group of people, institutions, and corporations.

Commercial Enterprises

Businesses or companies engaged in the buying and selling of goods or services with the aim of earning profits.