Which of the Following Is Not Considered a Selling Expense

question 46

Multiple Choice

Which of the following is not considered a selling expense?

• A) Cost of goods sold
• B) Cost of storing goods
• C) Freight-out expense
• D) Advertising expense

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Definitions:

Equipment

Fixed assets used in operations, such as machinery, computers, and furniture, which have a useful life of more than one accounting period.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update account balances before preparing financial statements, aligning them with the accrual basis of accounting.

Current Assets

Holdings that are projected to be liquidated, traded, or used up within twelve months or over the course of the operating cycle, depending on which timeframe is more extended.

Current Liabilities

Financial obligations or debts that a company is expected to settle within one year or within its operating cycle.