The expense categories that appear on a profit-and-loss statement are ________ expenses.
A) direct
B) indirect
C) functional account
D) natural account

Question

Quizplus · Accepted Answer

The expense categories that appear on a profit-and-loss statement are categorized as natural account expenses, which include expenses related to salaries, utilities, rent, and supplies, among others. Direct and indirect expenses relate to the production or operation of goods and services, while functional account refers to the categories used for accounting purposes. Natural account is the most appropriate category for expenses on a profit-and-loss statement.

The Expense Categories That Appear on a Profit-And-Loss Statement Are