Expenses Can Result From:
The correct choice this Multiple Choice Question (MCQ) is a), as Expenses are the results of utilizing of services. For example, if the company paid Rent Expenses for the month, then it is possible for the company / corporation to run the business and provides its services to clients and earns revenues during the accounting period. Without paying rent expenses and other expenses the business can't be carried on and as a result services can't be consumed or performed. Other options of this mcq are incorrect. Using up Liabilities resulted in a debit to liabilities account and a credit to cash account or bank account. Purchasing assets resulted in a debit to assets account and credit to cash or accounts payable account, so it is not the right choice. Expenses decrease Owner's Equity while Revenues increase Owner's Equity. So, expenses are very important to incur to earn revenue for the business.