_____ reflect the decrease in shareholders' equity resulting from the decrease in the net assets consumed during the generation of income.
A)Revenues
B)Expenses
C)Dividends
D)Liabilities
E)Common stock

Question

Quizplus · Accepted Answer

Expenses reflect the decrease in shareholders' equity resulting from the decrease in the net assets consumed during the generation of income. Revenues represent an increase in shareholders' equity, while dividends are distributions of profits to shareholders and do not necessarily reflect a decrease in equity. Liabilities and common stock represent sources of financing and do not directly reflect a decrease in equity due to the consumption of net assets.

_____ Reflect the Decrease in Shareholders' Equity Resulting from the Decrease