If a functional expense classification is used for the statement of comprehensive income,what must also be disclosed?

Answered: If a functional expense classification…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a functional expense classification is used for the statement of comprehensive income,
what must also be disclosed?

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Summary Introduction:

Expenses: Expenses means money spent for getting revenue to the entity. It involves cost of materials, labor, and supplies. It includes all direct and indirect expenses. Most of the expenses are related to the particularly one financial year. Owner's equity is decreased by expenses. The term expenses mean the total expenditure made by the Company in earning the revenues for the Company. Fundamental accounting equation shows how the expenses and revenues affect the business.

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