When Comparing Income Statements, Which Type of Company Does Not

question 48

Multiple Choice

When comparing income statements, which type of company does not have a section for selling and general administrative expenses?

• A) Manufacturing firm
• B) Service firm
• C) Merchandising firm
• D) All of these have a section for selling and general administrative expenses

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Definitions:

Promissory Notes

Written and signed agreements in which one party promises to pay another a specified sum of money either on demand or at a future date.

Specified Date

A particular or agreed upon day on which an event is scheduled to occur or a deadline is to be met.

Time Instrument

A document promising payment of a certain amount of money at a fixed or determinable future time, such as a promissory note or check.

Payment

The transfer of money or goods from one party to another as compensation for goods, services, or to fulfill a legal obligation.