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.

---

Definitions:

Modernization Theory

is a theoretical perspective that links societal development with the adoption of modern technological, political, and economic systems, traditionally viewing such modernization as a positive and linear progression.

Malthusian Theory

Proposes that population growth is potentially exponential while the growth of the food supply is linear, leading to overpopulation and societal issues.

Demographic Transition Theory

A theory that describes the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Cultural Diffusion

The process through which cultural beliefs, practices, technologies, or items spread from one society or cultural group to another.