Expenses That Fall Outside the Regular Operations of a Business

question 154

Multiple Choice

Expenses that fall outside the regular operations of a business are ________.

• A)not shown in the income statement of a merchandiser
• B)treated as current assets and are shown as merchandise inventory
• C)included under the other revenues and expenses section of the income statement
• D)not considered for the calculation of net income

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Definitions:

Inventory

The total amount of goods and materials held by a company that are ready for sale or in the process of being produced.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share of the profits.

Cash Dividends

Cash distributions from a company's earnings to its shareholders as a reward.

Land

A tangible asset representing property owned by an individual or business.