As compared to natural accounts, FUNCTIONAL ACCOUNTS:
A) are the accounts to which various costs are charged in the normal accounting cycle.
B) show the purpose for which expenditures are made.
C) include items such as storing, salaries, and taxes.
D) All of these.
E) Both are the accounts to which various costs are charged in the normal accounting cycle; and include items such as storing, salaries, and taxes.

Question

Quizplus · Accepted Answer

Functional accounts categorize expenditures based on their purpose, such as production, administration, or sales, rather than by the nature of the expense.

As Compared to Natural Accounts, FUNCTIONAL ACCOUNTS