Question: Which statement is correct about expenses on the statement of income? Expenses must be classified by their function Classifying expenses by nature means that expenses

Which statement is correct about expenses on the statement of income? Expenses must be classified by their function Classifying expenses by nature means that expenses are reported according to the activity for which they are incurred. Examples of expenses classified by function are cost of goods sold and administrative expenses. Expenses must be classified in decreasing order of magnitude

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