Asked by Apiwe Xozwa on Jul 13, 2024
Verified
Which statement is not correct about expenses on the statement of income?
A) Classifying expenses by function means that expenses are reported according to the activity for which they are incurred.
B) Examples of expenses classified by nature are salaries and depreciation.
C) Companies following ASPE do not have to list their expenses in any particular order.
D) Expenses must be classified in decreasing order of magnitude.
Statement Of Income
A financial document showing a company's revenue, expenses, and net income over a specific period.
Classifying Expenses
The process of organizing expenses into categories for financial reporting and analysis.
ASPE
A collection of accounting norms applicable to private entities in Canada, known as Accounting Standards for Private Enterprises.
- Contrast and compare the features of single-step and multiple-step income statements.
Verified Answer
Learning Objectives
- Contrast and compare the features of single-step and multiple-step income statements.
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