1. Expenses on the income statement may be grouped by: A. nature, but not by function. B. function, but not by nature. C. either function or nature. 2. An example of an expense classification by function is: A. tax expense. B. interest expense. C. cost of goods sold. 3. Denali Limited, a manufacturing company, had the following income statement information: Revenue $4,000,000 Cost of goods sold $3,000,000 Other operating expenses $500,000 Interest expense $100,000 Tax expense $120,000 Denali's gross profit is equal to: A. $280,000. B. $500,000. C. $1,000,000 4. Under IFRS, income includes increases in economic benefits from: A. increases in liabilities not related to owners' contributions. B. enhancements of assets not related to owners' contributions. C. increases in owners' equity related to owners' contributions