Understanding Expenses

What best describes an expense?

• Cost incurred during business operations

• Investments in stocks

• Profit gained from business operations

• Revenue generated from sales

Which of the following is NOT an example of an expense for a student?

• Buying textbooks

• Scholarship awards

• Rent payments

• Tuition fees

What is the relationship between expense and expenditure?

• Expense is a type of investment

• They are completely unrelated terms

• Expenditure refers only to large expenses

• They often mean the same, especially in business

Which of the following would be considered a high expense?

• A discounted book

• A luxury car

• A cheap meal

• An inexpensive pen

What is a major expense for airlines?

• Employee training

• Buying airplanes

• Office supplies

• Internet services

Which of the following is NOT typically an expense for an airline?

• Renting airport space

• Marketing

• Stock investments

• Fuel

What is the purpose of an expense report?

• To record profits

• To document expenses incurred while working

• To track employee attendance

• To calculate sales revenue

How can employees get reimbursed for their expenses?

• By submitting a sales report

• By requesting a bonus

• By asking for a salary increase

• By filling in an expense report

What might a business provide to avoid employees using their own money for expenses?

• Stock options

• A business debit or credit card

• A company car

• Free meals

Why are expenses important to track in a business?

• To ensure profitability

• To calculate dividends

• To monitor employee performance

• To increase sales