Question: Which statement is correct? 1. The income statement following the cost of sales format requires an addition for stock releases of finished goods. 2. The

Which statement is correct?

1. The income statement following the cost of sales format requires an addition for stock releases of finished goods.

2. The income statement following the cost of sales format allocates costs following the categories.

3. The income statement following the nature of expenses format assigns costs according to their function.

4. The income statement following the cost of sales format assigns costs according to their function.

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