___________ are costs that a company incurs to generate revenue.
a. Assets
b. Liabilities
c. Equity
d. Expenses
Answer: d
Explanation: An expense is the cost of operations that a company incurs to generate revenue. Businesses can write off tax-deductible expenses on their income tax returns, provided that they meet the IRS’ guidelines. Accountants record expenses through one of two accounting methods: cash basis or accrual basis.