Ask Question
22 April, 10:13

A likely method that managers use for classification shifting is to report certain operating expenses as: Multiple Choice revenues. 1. non operating expenses. 2. income tax expense. 3. assets.

+3
Answers (1)
  1. 22 April, 12:46
    0
    Managers may engage in classification shifting by reporting operating expenses as non operating expenses to inflate reported operating income.

    Explanation:

    The expenses that are not related to the principle activities of a business is treated as non-operating expense

    A non-operating expense is an expense incurred from activities unrelated to core operations.

    Non-operating expenses are deducted from operating profits and accounted for at the bottom of a company's income statement.

    Examples of non-operating expenses include interest payments, dividends and capital gains or losses

    The main difference between a Operating and Non-operating expense is Operating expenses refers to all the costs an individual incur to bring a product or service to market whereas a Non-operating expenses refers to the costs that are not related to normal business operations, such a paying the interest.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A likely method that managers use for classification shifting is to report certain operating expenses as: Multiple Choice revenues. 1. non ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers