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JAMB Principles of Accounts 2004 Question 43

Question 43

Company Accounts

The expenses incurred in promoting a company are

  1. A.promoters' expenses
  2. B.floating expenses
  3. C.preliminary expenses
  4. D.the Board's expenses
Show the answer and explanation

Answer: C (preliminary expenses)

Explanation

Costs of forming a company, such as legal and registration fees, are called preliminary expenses.