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:

Holocrine

A mode of secretion in which the entire cell disintegrates to release its substances, often seen in sebaceous glands.

Exocrine

Pertaining to glands that secrete their products through ducts either onto the surface of an organ or outside the body.

Endocrine

Pertaining to glands that secrete hormones or other products directly into the blood.

Exocrine

Referring to glands that release their secretions through ducts to the external environment or into body cavities.