Which statement is not correct about expenses in the income statement?
A)The function of expense format classifies expenses based on their use.
B)Some nature of expense categories are depreciation, employee costs, raw materials consumed.
C)The nature of expense format classifies expenses based on their source.
D)Some nature of expense categories are cost of sales, administration or warehouse.

Question

Quizplus · Accepted Answer

The nature of expense format classifies expenses based on their inherent nature, such as depreciation or employee costs, not by function like cost of sales or administration.

Which Statement Is Not Correct About Expenses in the Income