Using the Data Provided Below, Determine Whether the Income Statement

question 149

Essay

Using the data provided below, determine whether the income statement will be formatted by "function of expense" or by "nature of expense." Briefly explain your response.
$\begin{array}{l|r}\text { Distribution expense } & 65,000 \\\hline \text { Cost of goods sold } & 100,000 \\\hline \text { General and administrative expense } & 45,000 \\\hline \text { Warehousing expense } & 20,000 \\\hline \text { Interest expense } & 5,000\end{array}$

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Definitions:

Norms

Shared standards of behavior that are considered acceptable within a group, community, or culture.

Values

Core beliefs or standards that guide and influence behavior and decision-making, reflecting what is important to an individual or organization.

Shared Behaviors

Actions or conducts that are common among members of a group, contributing to a collective culture or identity.

Gestures

Physical movements of the body, particularly hands and arms, which express ideas, feelings, or instructions, often accompanying speech.