Chapter 9 - Advanced Reporting

Question 1

What is classification?

Answer 1

Classification is the process of presenting information on financial statements in a manner that groups or arranges the information in order to facilitate understanding, analysis and accountability within the organisation.

Question 2

What are the four groups expenses are seperate into?

Answer 2

The four groups expenses are separated into are:
COS Cost of Sales.
S & D Selling and Distribution.
G & A General and Administration.
and F Financial.