Which of the following is an example of an expense:
A)an owner withdrawal for personal use.
B)the payment of the monthly utility bill.
C)the receipt of cash from a credit customer.
D)the payment of a creditor on account.

Question

Quizplus · Accepted Answer

An expense is a cost incurred in the operation of a business. The payment of a monthly utility bill is an example of such a cost. Option A is incorrect because an owner withdrawal is not an expense, but rather a reduction in equity. Option C is incorrect because it represents a revenue or a cash inflow, not an expense. Similarly, option D represents a reduction in liability, not an expense.

Which of the Following Is an Example of an Expense