If Expenses Are Classified into the Groups, Cost of Sales

question 9

Multiple Choice

If expenses are classified into the groups, cost of sales, selling expenses, administrative expenses and finance expenses, under IAS 1/AASB 101 they are classified by:

• A) nature.
• B) function.
• C) liquidity.
• D) tangibility.

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Definitions:

Exemplary Character

Relates to individuals or actions serving as ideal examples or models in moral, ethical, or social contexts.

Charismatic Authority

A form of leadership where followers are drawn to the leader's personal qualities and the way these qualities inspire loyalty and obedience.

Rational

Rational refers to the quality of being based on or in accordance with reason or logic.

Traditional

Practices, beliefs, or objects that are passed down within a society and have historical significance or cultural importance.