Expenses are incurred
A)to generate revenue.
B)to produce liabilities.
C)only during the adjustment process.
D)to produce assets.

Question

Quizplus · Accepted Answer

Expenses are typically incurred in order to generate revenue for the business. For example, a business may need to purchase inventory or pay for advertising in order to attract customers and make sales. The ultimate goal of incurring these expenses is to increase the business's revenue and profitability. While expenses may also be incurred to produce assets or liabilities, generating revenue is typically the primary reason for incurring expenses.

Expenses Are Incurred