Question 1 1.43 pts Which of the following is an example of an administrative expense? Loss from disposing of fixed assets Cost of goods sold Office supplies expense Advertising expense Question 2 1.43 pts Which of the following is an example of a selling expense? Advertising expense Rent expense Cost of goods sold Depreciation of land and building James Bonds Company Income Statement For the Year Ended December 31, 2016 Revenues: Sales $300,000 Interest Income 20.000 Total Revenues $320,000 Expenses: Cost of Goods Sold $60,000 Selling Expenses 25,000 General and Administrative Expenses 30,000 Interest Expense 14,000 Total Expenses 129.000 Net Income $191.000 If the income statement were prepared in a multiple-step format, gross profit would be: $260,000 $126,000 $240,000 $185,000 James Bonds Company Income Statement For the Year Ended December 31, 2016 Revenues: Sales $300,000 Interest Income 20.000 Total Revenues $320,000 Expenses: Cost of Goods Sold $60,000 Selling Expenses 25,000 General and Administrative Expenses 30,000 interest Expense 14.000 Total Expenses 129.000 Net Income $191.000 If the income statement were prepared in a multiple-step format, Other/Income Expense would be: $14,000 $6,000 ($6,000) $34,000 Where are selling and administrative expenses found on the multi-step income statement? Before gross profit After gross profit After net income and before expenses After sales and before gross profit Question 6 1.43 pts Under the cash basis of accounting, expenses are recorded when paid. True False Question 7 1.42 pts Using accrual accounting, expenses are recorded and reported only: when they are incurred and paid at the same time. if they are paid before they are incurred. when they are incurred, whether or not cash is paid. if they are paid after they are incurred