Which Statement Is Correct About Expenses in the Income Statement

question 56

Multiple Choice

Which statement is correct about expenses in the income statement?

• A)The nature of expense format classifies expenses based on their source.
• B)Some nature of expense categories are cost of sales, administration or warehouse.
• C)Expenses must be classified by their function.
• D)Expenses should be classified in decreasing order of magnitude.

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Definitions:

Exclusion Laws

Laws implemented to restrict or prohibit certain groups of people, often based on race or nationality, from immigrating to or residing in a country.

Mob Violence

Acts of violence carried out by large groups of people outside the boundaries of legal and civil conduct, often driven by collective social or political grievances.

Voter Turnout

The percentage of eligible voters who actually cast their ballots in an election.

Reconstruction

The period following the American Civil War (1865-1877), during which the United States attempted to address the inequalities of slavery and integrate the Southern states back into the Union.