Expenses are incurred

Question

Quizplus · Accepted Answer

Expenses are costs that a business incurs in order to generate revenue. They are usually necessary to sell goods or provide services, and are subtracted from revenue to determine a company's net income. For example, the cost of raw materials or labor to produce goods for sale, or the cost of advertising to promote a service would be considered expenses. B, C, and D are not accurate as they do not fully describe the purpose and nature of expenses in accounting.

Expenses Are Incurred