Question

Classify each of the following items as revenues, expenses, or dividends from the drop down provided.

1. Postage expense_____

Answer 1

Postage expense is classified as an expense, being the cost incurred in business operations.

Step-by-step explanation:

The item 'Postage expense' would be classified as an expense in accounting. In financial accounting, an expense is considered to be the cost incurred in or required for something. Revenues refer to the income that a company receives from its normal business activities, usually from the sale of goods and services to customers. Dividends are the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Therefore, postage costs incurred by a company for business operations are classified as an expense.