Which statement is correct about expenses in the income statement?
A)The nature of expense format classifies expenses based on their source.
B)Some nature of expense categories are cost of sales, administration or warehouse.
C)Expenses must be classified by their function.
D)Expenses should be classified in decreasing order of magnitude.

Question

Quizplus · Accepted Answer

The Answer of Which statement is correct about expenses in the income statement?
A)The nature of expense format classifies expenses based on their source.
B)Some nature of expense categories are cost of sales, administration or warehouse.
C)Expenses must be classified by their function.
D)Expenses should be classified in decreasing order of magnitude.

Which Statement Is Correct About Expenses in the Income Statement