Which Statement Is Correct About Expenses on the Income Statement

question 91

Multiple Choice

Which statement is correct about expenses on the income statement?

• A)Classifying expenses by nature means that expenses are reported according to the activity for which they are incurred.
• B)Examples of expenses classified by function are cost of goods sold and administrative expenses.
• C)Expenses must be classified by their function.
• D)Expenses must be classified in decreasing order of magnitude.

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