Which of the following should be classified as a General and Administrative Expense on a Multi-Step Income Statement:
A)Delivery Expense
B)Sales Salaries Expense
C)Advertising Expense
D)Insurance Expense

Question

Quizplus · Accepted Answer

Insurance expense is usually considered a general and administrative expense as it is not directly related to producing goods or services. Delivery expense may be categorized as a cost of goods sold or a selling expense, while sales salaries expense and advertising expense are typically classified as selling expenses.

Which of the Following Should Be Classified as a General