Expenses of a business include:
A) sales and cash equivalents.
B) common stock and rent.
C) cost of goods sold and salaries.
D) retained earnings and utilities.

Question

Quizplus · Accepted Answer

Expenses refer to the money that a business spends in order to generate revenue. Cost of goods sold (COGS) is the amount a business spends on producing or acquiring the products or services that it sells, and salaries represent the cost of paying wages to employees. Therefore, C is the best choice as it includes two common types of expenses for a business. A, B, and D are not correct because they do not represent expenses but rather financial items such as assets (sales and cash equivalents), equity (common stock and retained earnings), and utilities (a specific expense category).

Expenses of a Business Include