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

Question

Quizplus · Accepted Answer

General expenses refer to expenses that are not directly related to producing or selling a product or service, but are necessary for running a business. Payments made for insurance would fall under this category. A) Salaries paid to salespeople would be classified as a selling expense. B) Dividends paid to stockholders would not appear on an income statement. D) Costs associated with an advertising campaign would be classified as a marketing expense.

Which of the Following Would Be Classified as a General