Selling and administrative expenses would likely appear on the balance sheet of:
A) A clothing store.
B) A computer manufacturer.
C) A television network.
D) All of these firms.
E) None of these firms.

Question

Quizplus · Accepted Answer

Selling and administrative expenses are considered operating expenses and are recorded on the income statement, not the balance sheet. The balance sheet reflects a company's assets, liabilities, and equity at a specific point in time.

Selling and Administrative Expenses Would Likely Appear on the Balance