GCE Accounting 2023 Objective — Question 13
Question 13 of 50 from the General Certificate of Education (GCE) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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The reason for treating carriage inwards in the trading account is because (a) it is an expense on goods sold to customers (b) carriage inwards is an expense item in the profit and loss account (c) it does not appear in the balance sheet (d) it is an expense on goods purchased
- A. it is an expense on goods sold to customers
- B. carriage inwards is an expense item in the profit and loss account
- C. it does not appear in the balance sheet
- D. it is an expense on goods purchasedCorrect
Explanation
Carriage inwards is the cost of transporting purchased goods to the business, so it is charged to the trading account as part of the cost of purchases.
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