Expenses That Fall Outside the Regular Operations of a Business

question 109

Multiple Choice

Expenses that fall outside the regular operations of a business are:

• A)not shown in the income statement of a merchandiser.
• B)treated as current assets and are shown as merchandise inventory.
• C)included under the other revenues and expenses section of the income statement.
• D)included in the selling and administrative expense section of the income statement.

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Definitions:

Hypothetical Nations

Imaginary or theoretical countries used for the purpose of discussion, analysis, or illustration in academic exercises.

Tariff

A tax imposed by a nation on an imported good.

Excise Tax

An excise tax is a tax levied on the sale of specific goods or services, such as tobacco, alcohol, and fuel, often intended to discourage their use or generate revenue.

Imported Good

A product or service brought into one country from another for the purpose of selling it.