Which of the Following Is an Example of a FUNCTIONAL

question 192

Multiple Choice

Which of the following is an example of a FUNCTIONAL cost account?

• A) Auto repairs
• B) Advertising
• C) Taxes
• D) Social Security
• E) Any of these-because functional accounts include any costs which are used in the normal preparation of a company's operating statement.

---

Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest in the company.

Owner's Drawings

The funds taken from the business by the owner for personal use, not considered as salary or wages.

Owner Drawings

Refers to the money or assets taken out of a business by the owner(s) for personal use.