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On a statement of profit or loss, in what order are the expenses conventionally listed?
AAlphabetically by account name
BHighest to lowest amount, Miscellaneous last
CLowest to highest amount, Miscellaneous first
DIn the order they were incurred during the month
Answer & Solution
Correct answer: B. Highest to lowest amount, Miscellaneous last
1. The formatting rules list expenses from highest to lowest dollar amount.
2. The one exception is Miscellaneous Expense, which is always placed last.
3. The ordering is by amount, not alphabetical (A) or chronological (D).
4. Option C reverses both the amount order and the placement of Miscellaneous.
5. Therefore expenses run highest to lowest with Miscellaneous last.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.4.1 "Income Statement", p.22_
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