{"id":48791,"date":"2024-04-15T22:46:22","date_gmt":"2024-04-15T22:46:22","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48791"},"modified":"2024-04-15T22:46:22","modified_gmt":"2024-04-15T22:46:22","slug":"while-computing-profit-before-incorporation-operating-expenses-are-divided-on-the-basis-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/while-computing-profit-before-incorporation-operating-expenses-are-divided-on-the-basis-of\/","title":{"rendered":"While computing profit before incorporation operating expenses are divided on the basis of"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Revenue and capital expenditure&#8221; option2=&#8221;Time period&#8221; option3=&#8221;Sales ratio&#8221; option4=&#8221;Capital Ratio&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. Time period<\/strong><\/p>\n<p>Operating expenses are divided on the basis of time period because they are incurred over a period of time. This allows businesses to track their expenses and see how they are changing over time. It also allows them to compare their expenses to other businesses in the same industry.<\/p>\n<p>Revenue and capital expenditure are not relevant to the division of operating expenses. Sales ratio and capital ratio are not terms that are used in accounting.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li>\n<p><strong>A. Revenue and capital expenditure<\/strong><br \/>\nRevenue is the income that a business generates from its sales. Capital expenditure is the money that a business spends on long-term assets, such as buildings and equipment. These two items are not relevant to the division of operating expenses.<\/p>\n<\/li>\n<li>\n<p><strong>B. Time period<\/strong><br \/>\nOperating expenses are incurred over a period of time. This allows businesses to track their expenses and see how they are changing over time. It also allows them to compare their expenses to other businesses in the same industry.<\/p>\n<\/li>\n<li>\n<p><strong>C. Sales ratio<\/strong><br \/>\nSales ratio is not a term that is used in accounting.<\/p>\n<\/li>\n<li>\n<p><strong>D. Capital ratio<\/strong><br \/>\nCapital ratio is not a term that is used in accounting.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Revenue and capital expenditure&#8221; option2=&#8221;Time period&#8221; option3=&#8221;Sales ratio&#8221; option4=&#8221;Capital Ratio&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-48791","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>While computing profit before incorporation operating expenses are divided on the basis of<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/while-computing-profit-before-incorporation-operating-expenses-are-divided-on-the-basis-of\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"While computing profit before incorporation operating expenses are divided on the basis of\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Revenue and capital expenditure&#8221; 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