Asked by Jacob Cadavid on May 27, 2024
Verified
Assets that are used up during the process of earning revenue are called expenses.
Assets Used
Refers to the assets that are employed or utilized in the operation of a business to generate revenue.
Earning Revenue
The process of generating income through the sale of goods, provision of services, or other business activities.
Expenses
The costs incurred by a business in the process of earning revenue.
- Identify the distinctions between liabilities and assets, and understand their effects on financial reports.
Verified Answer
AP
Alyssa PuenteMay 28, 2024
Final Answer :
True
Explanation :
This statement is true. Expenses are costs incurred in the process of generating revenue, and they reduce the overall profitability of a business or organization. Examples of expenses include salaries and wages, rent, utilities, and supplies.
Learning Objectives
- Identify the distinctions between liabilities and assets, and understand their effects on financial reports.
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