The Statement That Is Not Correct Concerning the Definition of Expenses

Multiple Choice

The statement that is not correct concerning the definition of expenses in the Conceptual Framework is which of the following?

A) An expense arises whenever the economic benefits in an asset are consumed or lost.
B) The definition of expenses does not encompass items that have traditionally been reported in the financial statements as losses.
C) An expense must result in a decrease in equity.
D) The definition of expenses is expressed in terms of changes in assets, liabilities and equity.