The Expense Example That Is a Classification by Nature Rather

question 21

Multiple Choice

The expense example that is a classification by nature rather than by function is:

• A) depreciation expense
• B) administrative expenses
• C) marketing expenses
• D) occupancy expenses

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Definitions:

Organized System

A set of interrelated or interacting elements forming a unified whole, often structured to achieve specific goals or perform specific functions efficiently.

Assumptions

Beliefs or ideas taken for granted without proof, often serving as a basis for further reasoning or arguments.

Phenomena

Observable events or occurrences that can be investigated scientifically.

Theory

A set of principles on which the practice of an activity is based or an explanation of the principles of phenomena.