When Expenses Are Presented by Function in the Income Statement

question 82

Multiple Choice

When expenses are presented by function in the income statement,

• A) they should be presented by type of expense (e.g., depreciation, purchases, salaries).
• B) they should be reported as part of other comprehensive income.
• C) their cash flow predictive value is increased.
• D) more professional judgment is required to allocate expenses between functions.

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Definitions:

Behavioral Level

The manifestation of actions and reactions observed in individuals or groups, often studied in psychology to understand and predict human behavior better.

Emotional Level

Describes the intensity or degree of emotions a person experiences or expresses.

Physiological Level

Referring to the normal functioning of an organism or any of its parts, usually associated with biochemical and physical processes.

Tend-and-befriend Response

A stress response model proposing that people, particularly women, seek social alliances and support rather than fight or flight.