Question

__________ are costs which have been applied against revenue of particular accounting period.

• A. Expenses
• B. Income
• C. Loss
• D. None of these

Answer 1

Answer: (A)

Expenses

Costs incurred by a business in the process of earning revenue are known as expenses. Generally, expenses are measured by the cost of assets consumed or services used during an accounting period. The usual items of expenses are depreciation, rent, wages, salaries, interest, cost of heater, light and water, telephone etc.