Which of the Following Are the Two Types of Expenses

question 77

Multiple Choice

Which of the following are the two types of expenses recorded on the income statement?

• A) cost of goods sold and production costs
• B) sales expenses and administrative expenses`
• C) operating expenses and administrative expenses
• D) cost of goods sold and operating expenses

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Definitions:

Taxable Income

The amount of income subject to taxes, after all deductions and exemptions are taken into account.

Nominally Progressive

Pertaining to tax structures where the nominal rates increase as the taxable base increases, without necessarily resulting in a higher effective tax rate on higher incomes due to possible deductions and exemptions.

Regressive Effect

A situation where a policy or economic condition disproportionately impacts lower-income individuals more negatively than those with higher incomes.

Proportional

Proportional refers to a relationship or distribution in which changes in one variable correspond to equal changes in another variable.