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#cfa-level-1 #reading-25-understanding-income-statement
Expenses reflect outflows, depletions of assets, and incurrences of liabilities in the course of the activities of a business.
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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENT
hereas Kraft lists the years in decreasing order with the most recent year listed in the left-most column. Different orderings of chronological information are common. Differences in presentations of items, such as expenses, are also common. <span>Expenses reflect outflows, depletions of assets, and incurrences of liabilities in the course of the activities of a business. Expenses may be grouped and reported in different formats, subject to some specific requirements. For example, Danone reports research and development expenses as a separate line item w


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