Which of the following is classified as a general expense?
A) promotional expenses
B) wages of salespeople
C) legal fees paid
D) advertising costs
E) depreciation costs of showroom
Answer: C
Explanation: General expenses are operating expenses incurred in the overall administration of a business. They include such items as professional services (such as accounting and legal fees), office salaries, depreciation of office equipment, insurance for office operations, and supplies.
Difficulty: 2: Moderate
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