Expenses Not Related to the Primary Operations of the Business

question 64

Multiple Choice

Expenses not related to the primary operations of the business are sometimes reported as:

• A) administrative expense.
• B) operating expense.
• C) other expense.
• D) all of these.

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Definitions:

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the net income to retained earnings.

General Ledger

A complete record of all financial transactions over the life of a company, organized into debits and credits across various accounts.

Capital Account

An account showing the net changes in property ownership and transfer of payment among countries for international transactions, or in a company's context, represents the stake of owners in the firm.

Revenue Accounts

Accounts that record the income generated from the sale of goods and services, before any expenses are subtracted.