When Preparing an Income Statement for a Retailer How Will

question 60

Multiple Choice

When preparing an income statement for a retailer how will (1) Discount allowed and (2) depreciation of sales-person's motor vehicles be classified?

• A) Administrative expenses; administrative expenses
• B) Finance and other expenses; finance and other expenses
• C) Finance and other expenses; selling and distribution expenses
• D) Selling and distribution expenses; selling and distribution expense

---

Definitions:

Pertinent Information

Information that is relevant and directly related to a specific topic or context.

Cause-and-effect

A relationship between events or things, where one is the result of the other or others, a combination of action and reaction.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.

Priority

The status established among tasks or concerns to indicate the order in which they should be addressed or considered.