Regarding Presentation of Expenses by Nature Versus Function, Function Refers

question 51

Multiple Choice

Regarding presentation of expenses by nature versus function, function refers to

• A)the type of expense, such as depreciation, purchases, or employee benefits.
• B)whether the expense actively contributed to generation of income.
• C)the business activity to which the expense relates.
• D)the name of the cost centre responsible for the expense.

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Definitions:

Days' Sales Uncollected

A financial metric indicating the average number of days it takes a company to collect payment after a sale is made.

Accounts Receivable

Amounts owed to a company by customers for goods or services provided on credit, considered an asset on the balance sheet.

Net Sales

Revenue from goods or services sold, subtracting returns, allowances for damaged or missing goods, and discounts.

Bank Reconciliation

The process of verifying the balance of a company's bank accounts with their financial records, identifying any discrepancies that may exist.