Which of the Following Expenses Normally Appearing in an Internally $\bullet$

question 37

Multiple Choice

Which of the following expenses normally appearing in an internally prepared income statement are required to be separately disclosed in an external income statement prepared to conform to the requirements of the accounting standards?
$\bullet$ Advertising
$\bullet$ Insurance
$\bullet$ Telephone

• A) None
• B) Advertising only
• C) Insurance only
• D) All of these expenses

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Definitions:

Operating Activities

Transactions and events that relate to the primary operations of the company, including cash received from customers and cash paid for expenses.

Resources

Assets, materials, and inputs needed by businesses to produce goods or services.

Land

An asset represented by the earth's surface not depreciated over time, considered a fixed asset on a company's balance sheet without an expiration or useful life.

Financing Activity

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.