Answered: Which statement is incorrect? *

Business

Accounting

Which statement is incorrect? *

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 1DQ

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Question

100%

Which statement is incorrect? *

The FUNCTIONAL Income Statement classifies expenses into cost of sales, selling expenses and general administrative expenses, among others.

Income encompasses both revenues and gains. Revenues arise in the ordinary course of business activities while gains are not.

Expenses encompasses both expenses and losses. Losses usually comprise the majority amount of deductible expenses to arrive at taxable income.

The statement of comprehensive income encompasses all income and expenses, whether they are recognized in profit or loss determination or recognized directly in equity.

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