Which of the following are the two types of expenses recorded on the income statement?
A) cost of goods sold and production costs
B) sales expense and administrative expenses`
C) operating expenses and administrative expenses
D) cost of goods sold and operating expenses

Question

Quizplus · Accepted Answer

The two types of expenses recorded on the income statement are cost of goods sold and operating expenses. Cost of goods sold refers to the direct costs of producing or purchasing the goods that were sold, while operating expenses include all other expenses necessary for the ongoing operation of the business, such as rent, salaries, advertising, and utilities. Therefore, option D is the correct answer.

Which of the Following Are the Two Types of Expenses