The Choice of Classification Between Nature and Function of Expenses

question 40

Multiple Choice

The choice of classification between nature and function of expenses from ordinary activities depends on:

• A) the size of the items that would be reported under the possible classifications.
• B) the historical evidence about the probability of the items recurring.
• C) the classification that provides information that is reliable and more relevant.
• D) the classification that best reflects the way expenses vary directly or indirectly with the entity's level of activity.

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Definitions:

Online Connections

Relationships or networks formed through digital platforms or the internet.

Boilerplate Text

Standardized and often repetitive text used in documents or electronic forms where the main content remains unchanged.

Boilerplate Text

Standardized sections of text used in documents or electronic forms that are unchanged across similar documents.

Systematize

The process of organizing or arranging methods and processes in a systematic order to improve efficiency.