Question

What expenses typically come first in the "Expenses" section of an income statement? a. Non-operating expenses b. Irregular expenses c. Selling, general and administrative expenses d. Tax expenses

Answer 1

c. Selling, general and administrative expenses

Step-by-step explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.

Selling, general and administrative expenses typically come first in the "Expenses" section of an income statement.