Which of the following pairs of items would normally be classified as expenses?
A) Ordinary dividends and salaries paid
B) Salaries paid and interest paid on loans
C) Discount received and interest paid on loans
D) Amortisation of goodwill and loan payable

Question

Quizplus · Accepted Answer

Salaries paid and interest paid on loans are expenses as they are costs incurred by the company in order to generate revenue. Ordinary dividends, discount received, and amortisation of goodwill are not considered expenses.

Which of the Following Pairs of Items Would Normally Be