Under the Framework,which of these is not an essential characteristic of an expense?
A) It must result in a decrease in equity
B) It must represent a flow
C) It must be associated with the earning of revenue
D) It must take the form of a decrease in an asset or an increase in a liability

Question

Quizplus · Accepted Answer

Expenses are not strictly required to be associated with the earning of revenue. They can occur independently of revenue generation, as they represent outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, not necessarily directly tied to the earning of revenue.

Under the Framework,which of These Is Not an Essential Characteristic