Which of the Following Would Be Classified as a General

question 136

Multiple Choice

Which of the following would be classified as a general expense on an income statement?

• A)costs associated with an advertising campaign
• B)payments made for insurance
• C)salaries paid to salespeople
• D)dividends paid to stockholders

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Definitions:

Payee

The party in a financial transaction who receives the payment.

Negotiating

Negotiating involves discussing terms and conditions with the goal of reaching an agreement or compromise on matters of business, trade, or interpersonal issues.

Dishonored

A term referring to a financial instrument, such as a check, that has been refused payment by the bank upon presentation.

Indorse

To sign the back of a financial instrument, thus transferring ownership or to endorse it.