Which Statement Is Not Correct About Expenses in the Income

question 80

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

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Definitions:

Bank Statement

A document summarizing the financial transactions occurring within a specific period on a bank account.

Check Register

A record book or electronic log used to track checks written, deposits made, and current balances in a checking account.

Outstanding Deposits

Money that has been deposited into a bank account but has not yet been processed or credited to the account.

Outstanding Check

One that has been written but hasn’t yet cleared the bank and been charged to the customer’s account.