Question

Which of the following describes an expense?

(a)-Inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations.
(b)-Increases in equity (net assets) from peripheral or incidental transactions of an entity except those that result from revenues or investments by owners.
(c)-Decreases in equity (net assets) from peripheral or incidental transactions of an entity except those that result from expenses or distributions to owners.
(d)-Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Answer 1

(d)-Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Step-by-step explanation:

According to CON 6, which defines ten interrelated elements of the financial statement, of GAAP:

A = Revenues

B = Gains

C = Losses

D = Expenses

So, the right option is D