Which of the Following Would Not Appear as a Fixed

question 99

Multiple Choice

Which of the following would not appear as a fixed expense on a selling and administrative expense budget?

• A) Freight-out
• B) Office salaries
• C) Property taxes
• D) Depreciation

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Definitions:

Sole Proprietor

An individual who owns and operates a business alone, bearing sole responsibility for its operations and liabilities.

Short-Term Capital Losses

Financial losses realized from the sale of an asset held for a year or less, which can be used to offset capital gains and reduce taxable income.

Capital Asset

Any type of asset that is held for investment or for personal use, including stocks, bonds, real estate properties, and collectibles, among others.

Taxpayer

An individual or entity legally obligated to pay taxes to a governmental authority, such as the IRS.