Multiple choice

Money spent on things where you don't get an asset in return is called a(n) ?

  1. Asset

  2. Revenue

  3. Expense

  4. Purchase

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An expense is a cost incurred in the ordinary course of business that does not result in the acquisition of a long-term asset. Assets are resources owned, while revenue is income generated.