The primary distinction between expenses and losses is ________.
A) the verifiability of the transactions
B) the nature of the activities that bring about the transactions
C) the timing of the transactions
D) the amount and materiality of the transactions

Question

Quizplus · Accepted Answer

Expenses are costs incurred in the process of earning revenue from normal business operations, while losses are decreases in equity from peripheral or incidental transactions.

The Primary Distinction Between Expenses and Losses Is ________