Which of the following correctly describes an expense?
A)An obligation of the entity.
B)An investment the owners have made in the business.
C)An economic resource that provides future benefits.
D)An economic sacrifice made to earn revenue.

Question

Quizplus · Accepted Answer

An expense is an economic sacrifice made by the entity to earn revenue. It is a cost incurred in the process of generating revenue for the business.

Which of the Following Correctly Describes an Expense