Classifying by function-income statement, Financial Accounting

By classifying by function

Under this format, the expenses of the company are classified into 5 major categories i.e.

  1. Cost of sales [(opening stock + purchases – closing stock) and deprecation]
  2. Distribution costs (transport costs, selling expenses, commission, provision for bad debts etc)
  3. Administration expenses (salaries and wages, telephone, rates, postage, rent etc, goodwill amortization)
  4. Other expenses (all other not falling under the above) groups of expenses)
  5. Finance cost (interest on loan and  bank overdraft, interest on finance lease, dividends on redeemable preference shares).
Posted Date: 12/11/2012 11:55:34 PM | Location : United States







Related Discussions:- Classifying by function-income statement, Assignment Help, Ask Question on Classifying by function-income statement, Get Answer, Expert's Help, Classifying by function-income statement Discussions

Write discussion on Classifying by function-income statement
Your posts are moderated
Related Questions
Funding the investment by an issue of ordinary shares could tender several advantages to Springbank plc. Gearing would drop to 47% (3·5/7·4) fewer than half of the sector average o

Sales volume reaches the maximum capacity of the new machine in Year 4. The positive NPV point to that the investment in Machine Two is financially acceptable althoug

A lawn care company started business on January 1, 2012. The company billed clients $105,000 for lawn care services completed in 2012. By December 31, the company had received $84,

what if 50% of customers who switch from pisa pizza who switch from original pizza to healthier pizza then switch to another brand from healthier pizza.

Extent of Tests of Control -Every year AUDITOR should obtain sufficient evidence about whether company's internal control over financial reporting, including controls for all inter

Analytical Procedures - Substantive tests of financial information that examine relationships among data as a means of obtaining evidence. Such procedures include: (1) comparison o


The standard EOQ model supposes that materials can be procured immediately and thus implies that the firm may place an order for replenishment as the inventory level drops to zero.

Tyler Smith has worked in an upholstery shop for 10 years. Tyler's wages were $20,000. Lately, Tyler has been unhappy with the shop's owner. Convinced that he could run an upholste

1. Kinetics is considering a project that has a NINV of $874,000 and generates net cash flows of $170,000 per year for 12 years. What is the NPV of this project if Kinetics' cost o