Which of the following would not be associated with an expense?
A)Using supplies.
B)Paying off an account payable.
C)Paying for electricity used by production equipment during the current period.
D)Paying daily wages for production workers.

Question

Quizplus · Accepted Answer

Paying off an account payable is not an expense as it represents a payment for goods or services previously purchased on credit. It is a reduction in a liability, not an expense. The other options (using supplies, paying for electricity, paying for wages) are all associated with expenses as they represent costs incurred in the current period in order to generate revenue.

Which of the Following Would Not Be Associated with an Expense