Final answer:
The true statement about expenses is that they are expired costs, reflecting the consumption of assets or services within a business to generate revenue.
Step-by-step explanation:
Of the statements provided concerning expenses, the correct statement is: Expenses are expired costs. Expenses refer to outflows or using up of assets as part of operations of a business that decrease equity. They represent the costs that are used up and generate revenue in the same period. In contrast to the provided options, expenses do not represent future economic sacrifices, as they are related to current or past transactions. Regarding whether costs are always expenses when paid in cash, it is important to note the distinction between costs and expenses. Costs become expenses when they are used up in the course of generating revenue. Not all costs are expenses at the time they are paid; for example, the purchase of an asset is a cost that becomes an expense over time through depreciation. Lastly, expenses benefit the company during the period they relate to and do not typically benefit the company for more than one accounting period.