Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement?

Question

Quizplus · Accepted Answer

Insurance Expense should be classified as a General and Administrative Expense because it is a cost incurred for the overall operation of the business and not directly related to the production of goods or services. Delivery Expense, Sales Salaries Expense, and Advertising Expense are all considered Selling Expenses because they relate directly to the promotion and sale of products or services.

Which of the Following Should Be Classified as a General