Question

Decreases in equity from costs of providing products and services to customers represent:

a) Operating expenses
b) Net profit
c) Gross revenue
d) Shareholder dividends

Answer 1

Decreases in equity from costs of providing products and services represent operating expenses.

Step-by-step explanation:

The decreases in equity from costs of providing products and services to customers represent operating expenses.

Operating expenses are the costs incurred in the ordinary course of business operations, such as salaries, rent, utilities, and advertising expenses.

These expenses directly reduce the equity or net worth of the business.