janelle only has one source of income, her job as a barista. she completes the income portion of the…

janelle only has one source of income, her job as a barista. she completes the income portion of the statement of her income and expense very quickly. she spends more time thinking about what expenses she has. the webinar recommends categorizing expenses by the types of benefits they provide. which types of expenses below would be reported in janelles income and expense statement?\n\nasset purchases, living expenses, and tax payments\n\ntax payments, living expenses, and variable expenses

janelle only has one source of income, her job as a barista. she completes the income portion of the statement of her income and expense very quickly. she spends more time thinking about what expenses she has. the webinar recommends categorizing expenses by the types of benefits they provide. which types of expenses below would be reported in janelles income and expense statement?\n\nasset purchases, living expenses, and tax payments\n\ntax payments, living expenses, and variable expenses

Answer

Answer:

Both options could potentially be reported in an income - and - expense statement. However, a more comprehensive view would include all types of relevant outflows. Asset purchases can be capital expenditures (which may be depreciated over time and affect the income statement indirectly), living expenses are day - to - day outflows, and tax payments are mandatory outflows related to income. Variable expenses are a type of expense that can change over time and are often included in an income - and - expense statement. So, if we have to choose one, the first option "Asset purchases, living expenses, and tax payments" is a more inclusive set for reporting in an income and expense statement as it covers different major types of outflows.

Brief Explanations:

Income and expense statements record inflows and outflows related to an individual's or entity's financial activities. Asset purchases can impact long - term financials, living expenses are regular outflows, and tax payments are due to income. Variable expenses are also part of overall outflows but the first option encompasses more fundamental types of expenses for such a statement.