Decreases in economic benefits in the form of outflows or depletions of assets or incurrences of liabilities that result in a decrease in equity,other than those relating to distributions to equity participants,is the definition of:
A)liabilities.
B)income.
C)expenses.
D)equity.

Question

Quizplus · Accepted Answer

This is the definition of expenses, which are recognized when there is a decrease in economic benefits in the form of outflows or depletions of assets, or incurrences of liabilities that result in a decrease in equity. Liabilities are obligations to transfer economic benefits as a result of past transactions or events, income is increases in economic benefits during the accounting period, and equity is the residual interest in the assets of an entity after deducting liabilities.

Decreases in Economic Benefits in the Form of Outflows or Depletions