Question

Which component is common to the income statements of trading and service businesses?

.A common component of the income statements of both trading and service businesses is _________ expenses.

Answer 1

Operating expenses. No matter what type of business you have, there will be costs associated with operations ( advertising, utilities, rent, salaries) that will be reflected on the income statement.

Answer 2

operating expenses

Step-by-step explanation:

An operating expense is refer to as the total sum of expense incur from normal business operations of a firm. It includes rent, cost of procuring an equipment, logistics costs,insurance, marketing, step costs, and funds apportioned for research and development. One of the major responsibilities of management of a firm is to decrease the operating expenses without significantly affecting the firm's market competing power in relation to its competitors.