Which Statement Is Not Correct About Expenses on the Statement

question 158

Multiple Choice

Which statement is not correct about expenses on the statement of income?

• A)Classifying expenses by function means that expenses are reported according to the activity for which they are incurred.
• B)Examples of expenses classified by nature are salaries and depreciation.
• C)Companies following ASPE do not have to list their expenses in any particular order.
• D)Expenses must be classified in decreasing order of magnitude.

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Definitions:

Misinterpret

To understand or interpret incorrectly, leading to a deviation from the intended meaning or message.

Neutral Behavior

Actions or responses that are neither particularly positive nor negative, often indicating a state of impartiality.

Competitive

A state or attitude involving rivalry, where individuals or groups strive to achieve a goal that cannot be shared or where achieving the goal by one means others do not.

Bilateral Threats

Situations or scenarios where two parties or nations pose mutual threats to each other's security or interests.