On an income statement, what are operating expenses that cannot be linked to cost of goods sold or to sales?
A) incidental expenses
B) functional expenses
C) miscellaneous expenses
D) general and administrative expenses

Question

Quizplus · Accepted Answer

General and administrative expenses are those expenses incurred in the normal course of running a business that cannot be directly linked to sales or cost of goods sold. These include expenses such as rent, utilities, salaries of non-sales staff, office supplies, and legal fees. Incidental expenses, functional expenses, and miscellaneous expenses are not specific categories of operating expenses and may be included in general and administrative expenses or cost of goods sold, depending on their nature.

On an Income Statement, What Are Operating Expenses That Cannot