An expense is best defined as:
A)Any payment of cash for the benefit of the company.
B)Past,present,or future payments of cash required to generate revenues.
C)Past payments of cash required to generate revenues.
D)Future payments of cash required to generate revenues.

Question

Quizplus · Accepted Answer

An expense is a cost incurred or payment made in order to generate revenue. This includes past, present, and future payments of cash. Option A is too broad, as not all payments made by a company are expenses. Option C only includes past payments, leaving out present and future expenses. Option D only includes future expenses, leaving out past and present expenses.

An Expense Is Best Defined As