Expense FAQs:

Q: Is expense a cost that is "paid" or "remitted"?

A: Yes, and usually in exchange for something of value.

Q: Are expenses costs that do not acquire?

A: Yes, and improve, or prolong the life of an asset.

Q: Are expenses recorded as a debit to an expense account and a credit to either an asset account or a liability account?

A: Yes, and which are balance sheet accounts.

Q: Is expense an event in which an asset is used up or a liability is incurred?

A: Yes.

Q: Are expenses deductible as an investment activity under Section 212 of the Internal Revenue Code if they are for the production or collection of income?

A: Yes, and for the management, conservation, or maintenance of property held for the production of income, or in connection with the determination, collection, or refund of any tax.

Q: Are expenses paid or incurred?

A: Yes.

Q: Is expense of capital or income variety depends upon its term?

A: Yes.