Decreases in equity that represent costs of assets or services used to earn revenues are called:
A) Liabilities.
B) Equity.
C) Withdrawals.
D) Expenses.
E) Owner's Investment.

Question

Quizplus · Accepted Answer

Decreases in equity that represent costs of assets or services used to earn revenues are expenses. Liabilities represent obligations that the company owes to others, withdrawals represent distributions to owners, and owner's investment represents the money put into the company by the owner.

Decreases in Equity That Represent Costs of Assets or Services