Expenses are the costs of operating a business that are paid for in the period covered by the income statement.

Question

Quizplus · Accepted Answer

Expenses are costs of operating the business,incurred to generate revenues in the period covered by the income statement.Basically,whenever a business uses up its resources to generate revenues during the period,it reports an expense,regardless of when the company pays for the resources.

Expenses Are the Costs of Operating a Business That Are