Which Statement Is Not Correct About Expenses in the Income

question 94

Multiple Choice

Which statement is not correct about expenses in the income statement?

• A)The function of expense format classifies expenses based on their use.
• B)Some function of expense categories are depreciation, employee costs, raw materials consumed.
• C)The nature of expense format classifies expenses based on their source.
• D)Some function of expense categories are cost of sales, administration or warehouse.

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Definitions:

Disjunctive Rule

A decision-making rule applied when choosing among alternatives, focusing on selecting the option that has at least one attribute exceeding a threshold level.

Non-compensatory Decision-making Rule

A decision rule where if an option does not meet at least one important criterion, it is dropped from consideration, regardless of its merits on other criteria.

George Kingsley Zipf

was an American linguist and philologist who is best known for Zipf's law, which suggests that in any given language, the frequency of any word is inversely proportional to its rank in the frequency table.

Linguist

A specialist in the study of language and its structure, including the study of grammar, syntax, phonetics, and semantics.