Which of the following best describes the term "expenses"?

Question

Quizplus · Accepted Answer

Expenses refer to the cost of assets used in the operations of a business, such as salaries, rent, utilities, and supplies. These costs are deducted from the revenue generated by the business to calculate its net income. Option A is incorrect because investing activities refer to the purchase and sale of long-term assets, such as property, plant, and equipment or investments. Option B is incorrect because equity represents the owners' claim to the assets of the business, not the amount of interest they have in the business. Option C is incorrect because future economic resources refer to assets that will benefit the business in the future, such as investments or patents.

Which of the Following Best Describes the Term "Expenses