CUET Preparation Today
What are the expenses? |
Amount invested by the owner in the firm Documentary evidence in support of a transaction Costs incurred by a business in the process of earning revenue Something on hand-goods, spares and other items in a business. |
Costs incurred by a business in the process of earning revenue |
The correct answer is option 3- Costs incurred by a business in the process of earning revenue. 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. |
