Which of the Following Would Be Classified as a General

question 232

Multiple Choice

Which of the following would be classified as a general expense on an income statement?

• A) Salaries paid to salespeople
• B) Dividends paid to stockholders
• C) Payments made for insurance
• D) Costs associated with an advertising campaign

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Definitions:

Lottery

A form of gambling involving the drawing of numbers at random for a prize, often regulated by governmental entities.

Probability

A measure of the likelihood that an event will occur, often represented as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Utility

A measure of satisfaction, happiness, or benefit that an individual derives from consuming goods and services.

Risk Averter

An individual or entity that prefers outcomes with less risk and is likely to avoid uncertain prospects in favor of a sure thing.