In which section of the income statement is the depreciation expense for an office copier machine located?

In which section of the income statement is the depreciation expense for an office copier machine located?

• A. Revenue
• B. Extraordinary Items
• C. General expense
• D. Other expenses

Answer: (C)

Depreciation for a fixed asset like an office copier is an operating cost tied to general office activities. On an income statement, expenses are grouped by function or nature, and office-wide depreciation is considered a general administrative expense rather than a revenue item, an extraordinary item, or a miscellaneous “other” expense. It reduces operating income as part of the day-to-day costs of running the business, but it isn’t a nonrecurring or unusual item. Therefore, it belongs in the general expense section.

Depreciation for a fixed asset like an office copier is an operating cost tied to general office activities. On an income statement, expenses are grouped by function or nature, and office-wide depreciation is considered a general administrative expense rather than a revenue item, an extraordinary item, or a miscellaneous “other” expense. It reduces operating income as part of the day-to-day costs of running the business, but it isn’t a nonrecurring or unusual item. Therefore, it belongs in the general expense section.