BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Expenses are listed on the income statement as they appear in the chart of accounts or in descending order (by dollar amount).

To determine

Identify whether the given statement is true or false.

Answer

Expenses are listed on the income statement as they appear in the chart of accounts or in descending order (by dollar amount) are True.

Explanation

Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for generating revenues are rent expense, depreciation expense, general and administrative expenses, selling expenses, and utilities expense.

Describe two approaches to listing the expenses in the income statement:

  • The expenses can be listed in the same order as it shown in the chart of accounts.
  • It can be shown in descending order by dollar amount.

The second approach helps the user in identifying the major expenses. From the above explanation, it is clear that expenses are listed on the income statement as they appear in the chart of accounts or in descending order (by dollar amount). Hence, the given statement is true.

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why do economists oppose policies that restrict trade among nations?

Principles of Macroeconomics (MindTap Course List)

What does it mean to adopt a maturity matching approach to financing assets, including current assets? How woul...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Find all the answers to your study problems with bartleby.
Textbook solutions plus Q&A. Get As ASAP arrow_forward