Which of the Following Accounts Would Never Be Reported in the Income

question 100

Multiple Choice

Which of the following accounts would never be reported in the income statement as an expense?

• A) Depreciation expense.
• B) Income taxes expense.
• C) Interest expense.
• D) Dividends expense.

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Definitions:

Security Interest

A legal claim on assets which is granted to secure the performance of an obligation, typically the repayment of a loan, which gives the lender rights in the secured assets.

Commercially Reasonable

Pertaining to actions, methods, or practices that are considered acceptable and appropriate by business standards or industry norms.

Liquidation

The sale of the nonexempt assets of a debtor and the distribution of the funds received to creditors.

Discharged

In a legal context, this refers to the process of releasing someone from their obligations or debts. In an employment context, it means being fired or let go from a job.