An income statement that includes the following items: Revenue
Other Income
Employee Benefits and Costs
Motor Vehicle Expenses
Would have been prepared using the:
A) Nature of expense method.
B) Narrative method.
C) Revenues and gains approach.
D) The function of expense approach.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The income statement is prepared using the nature of expense method because it lists expenses by their nature, such as employee benefits and motor vehicle expenses, rather than by their function.

An Income Statement That Includes the Following Items: Revenue