Which of the Following Accounts Is Not Classified as a Selling

question 106

Multiple Choice

Which of the following accounts is not classified as a selling expense on the income statement?

• A) Freight-out expense
• B) Advertising expense
• C) Sales salaries expense
• D) Interest expense

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Definitions:

Customers

People or organizations that buy products or services from a company.

Liability

An obligation a company owes to others, such as loans, accounts payable, or mortgages, which must be settled over time through the transfer of economic benefits.

Future Outflow

Projected cash payments or disbursements that a business expects to incur as a result of current operations or future activities.

Resources

Resources are materials, energy, services, staff, or other assets that are utilized to produce goods and services, effectively supporting business operations.