Asked by elandra dabney on Jun 15, 2024
Verified
Expenses can result from
A) increasing owner's equity
B) consuming services
C) using up liabilities
D) purchasing assets
Owner's Equity
Owner's equity represents the owner's claims to the assets of a business after all liabilities have been subtracted.
Consuming Services
Refers to the use of services by individuals or companies leading to their consumption or depletion over time.
- Understand the rules of debit and credit in relation to account balances.
- Interpret the implications of transactions on account balances.
Verified Answer
ST
shahanaz TamannaJun 21, 2024
Final Answer :
B
Explanation :
Expenses typically result from consuming services or using resources in the operation of a business, which does not directly increase owner's equity, use up liabilities, or involve the purchase of assets.
Learning Objectives
- Understand the rules of debit and credit in relation to account balances.
- Interpret the implications of transactions on account balances.
Related questions
Which of the Following Entries Records the Investment of Cash ...
Which of the Following Entries Records the Payment of a ...
Gently Laser Clinic Purchased Laser Equipment for $8,500 and Paid ...
Withdrawals Increase on the Credit Side of the Account
Cash Is Credited When the Business Makes a Payment for ...