Which of the Following Expenses Incurred by the Sporting Goods

question 64

Multiple Choice

Which of the following expenses incurred by the sporting goods department of a department store is a direct expense?

• A) Depreciation expense--office equipment
• B) Insurance on inventory of sporting goods
• C) Uncollectible accounts expense
• D) Office salaries

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Definitions:

Company's Management

Individuals responsible for overseeing the operations and making decisions within a corporation.

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained rather than being paid out as dividends to shareholders, often used for reinvestment in the business, debt reduction, or to bolster the balance sheet.

Total Stockholders' Equity

The total amount of capital that shareholders have invested in a company, including retained earnings and contributed surplus.

Dividends Declared

Profits announced by a company's board of directors to be distributed among shareholders, typically in the form of cash or additional shares.