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Employee's bonus expense is considered other expense on the income statement.

1) true
2) false

User Enver
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1 Answer

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Final answer:

Employee bonuses are treated as part of salary and wages, not other expenses, on an income statement and are therefore considered operating expenses related to a company's main activities.

Step-by-step explanation:

The statement that an employee's bonus expense is considered other expense on the income statement is false. Typically, bonuses paid to employees are considered to be part of salary and wages expenses, which are included under operating expenses. Operating expenses are costs associated with the main activities of the business. Other expenses usually comprise items that are not related to the primary business operations, such as interest paid on loans or losses from the sale of assets. Therefore, while bonuses are indeed expenses that reduce a company's net income, they are not categorized as other expenses on the income statement.

User Lenard
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