Chapter 15FSI, Problem 3DQ

To determine

Expenses: The costs that are incurred to earn revenues in the process of operating activities of the business are referred to as expenses.

Functional expense: The expense is classified by function when the expense is related to its purpose. Some examples are administration expenses, marketing expenses, selling expenses, distribution expenses.

To indicate: The disclosure requirements which are necessary, when an expense is classified by function on the statement of comprehensive income