The gross decrease in economic benefits for the business are what?
Correct answer: A. Expenses
- A. Expenses
- B. Obligations
- C. Creditors
- D. Income or gain
Explanation
Expenses are gross decreases in economic benefits during an accounting period, such as through using assets or incurring liabilities. Obligations and creditors are liabilities, while income or gains increase economic benefits.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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