If a Business Decided to Classify Its Expenses Under the Headings

question 17

Multiple Choice

If a business decided to classify its expenses under the headings 'Selling and Distribution,' 'General and Administrative' and 'Financial,' into which groupings would 1. depreciation of sales staff's motor vehicles and 2. bad debts written off, fall?

• A)1. general and administrative; 2. financial.
• B)1. selling and distribution; 2. financial.
• C)1. financial; 2. selling and distribution.
• D)1. selling and distribution; 2. general and administrative.

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Definitions:

Innocent Misrepresentation

A false statement made during a contract negotiation that was believed to be true by the person making it, affecting the other party's decision to enter the contract.

Remedy of Rescission

A legal remedy that voids a contract, returning the parties to their positions prior to the agreement, typically used in cases of misrepresentation or fraud.

Statutory Assignment

The transfer of legal rights from one party to another under the terms of a statute.

Equitable Assignment

Equitable assignment refers to a transfer of rights or benefits from one party to another that is recognized by courts of equity despite lacking the formal legal structure of a statutory assignment.