Question

As inventory and property plant and equipment on the balance sheet are consumed, they are reflected: Select one: a. Both as an expense on the income statement and as a use of cash on the statement of cash flows because the financial statements articulate b. On the balance sheet because assets are never consumed c. As a use of cash on the statement of cash flows d. As a revenue on the income statement e. As an expense on the income statement

Answer 1

E) As an expense on the income statement.

An expense is what?

The operating costs incurred by a business in order to produce revenue are referred to as expenses. According to a proverb, "making money costs money."

Paying suppliers, paying employees, leasing facilities, and depreciating equipment are examples of frequent costs. Businesses are permitted to deduct tax-deductible expenses from their taxable revenue on their income tax returns in order to reduce their tax liability. However, there are tight guidelines set forth by the Internal Revenue Service (IRS) regarding which costs companies may deduct.

Learn more about cash flows with the help of the given link:

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