With respect to reporting expenses,reporting entities are:
A)required to list all their expenses without aggregation
B)required to classify expenses by nature or function
C)required to classify expenses function only
D)not required to classify expenses in any particular way

Question

Quizplus · Accepted Answer

Reporting entities are required to classify expenses by nature or function in order to provide users of financial statements with useful information about the entity's expenses. This allows for better analysis and comparison of expenses over time and between different entities.

With Respect to Reporting Expenses,reporting Entities Are