On a multi-step income statement,merchandisers report operating expenses in two categories-selling expenses and administrative expenses.

Question

Quizplus · Accepted Answer

This statement is true. Merchandisers report operating expenses in two categories: selling expenses and administrative expenses on a multi-step income statement. Selling expenses are expenses incurred in promoting and selling merchandise, such as advertising, sales commissions, and shipping costs. Administrative expenses are expenses incurred in the general operation of the business, such as salaries of administrative staff, office rent, and supplies.

On a Multi-Step Income Statement,merchandisers Report Operating Expenses in Two