Question

The definition of an expense is which of the following?

A. Debts of a business that have yet to be paid
B. Resources acquired by a business that are consumed by the business
C. Purchase of goods or services consumed during the accounting perio

Answer 1

The definition of an expense is B. Resources acquired by a business that are consumed by the business.

Step-by-step explanation:

In accounting, an expense is a cost incurred by a business to generate revenue or support its day-to-day operations. Option B accurately defines an expense as resources acquired by a business that are consumed in the process of conducting its operations. Expenses include various costs such as wages, utilities, rent, and supplies, which contribute to the overall cost of running a business. Unlike assets, expenses are costs that do not provide future economic benefits and are typically associated with the current accounting period. Understanding and properly categorizing expenses is crucial for accurate financial reporting and assessing the profitability and financial health of a business.

Option B is the answer.