How Many of These Expenses That Would Normally Appear in an Internally

question 25

Multiple Choice

How many of these expenses that would normally appear in an internally prepared income statement are required to be separately disclosed in an external statement prepared to conform to the requirements of the accounting standards?
.Freight outwards
.Printing and stationery expenses
.Utilities expenses

• A)0
• B)1
• C)2
• D)3

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Definitions:

Journal

A log where every financial transaction is first recorded in the order of occurrence.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, bonds payable, and accounts payable.

Ledger

A book or other collection of financial accounts of a particular type, where transactions are recorded.

Normal Balances

The side (debit or credit) of an account that is increased, reflecting the account's natural balance.