On an Income Statement,operating Expenses That Cannot Be Linked to Cost

question 113

Multiple Choice

On an income statement,operating expenses that cannot be linked to cost of goods sold or to sales are known as which of the following type of expenses?

• A) incidental
• B) functional
• C) miscellaneous
• D) general and administrative

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Definitions:

Trustees

Individuals or organizations entrusted with the responsibility to manage assets or property on behalf of others, often for a specific purpose or benefit.

Board of Directors

A group of elected individuals who represent shareholders' interests, oversee management, and make strategic decisions for a corporation.

Business Judgment Rule

A legal principle that protects corporate directors and officers when making business decisions, assuming those decisions are made in good faith and with due care.

Duty of Care

The legal obligation of a person to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.