Which statement is not correct about expenses in the income statement?
A)The function of expense format classifies expenses based on their use.
B)Some function of expense categories are depreciation, employee costs, raw materials consumed.
C)The nature of expense format classifies expenses based on their source.
D)Some function of expense categories are cost of sales, administration or warehouse.

Question

Quizplus · Accepted Answer

The function of expense format actually classifies expenses based on their function within the business, such as cost of sales, selling, general and administrative expenses, etc., rather than specific types like depreciation, employee costs, or raw materials consumed, which are classified based on their nature.

Which Statement Is Not Correct About Expenses in the Income