Under GAAP companies generally classify income statement items by
A) function.
B) nature.
C) nature or function
D) date incurred.

Question

Quizplus · Accepted Answer

Under GAAP, companies generally classify income statement items by function, which means grouping expenses according to their purpose or nature. This allows for easier analysis of the company's expenses and can provide insight into how the company operates. IFRS also allows for the classification of expenses by function.

Under GAAP Companies Generally Classify Income Statement Items by