Question

9. Each of the following is a business expense, except payment for *

advertising
monthly rent
utility bills
equipment

Answer 1

equipment

Step-by-step explanation:

Equipment refers to tools or machinery used in the production of other goods and services for sale. They are not consumables, nor are they meant for sale. Equipment is treated as assets of the business.

Payments for assets is not an expense. Since the equipment will be used in many financial periods, its cost cannot be assigned to the purchase year alone. Payment for the equipment is treated as a capital or asset acquisition.