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WAEC Financial Accounting 2014 Question 15

Question 15

Final Accounts of a Sole Trader

The cost of carriage outward is classified as

  1. A.a selling and distribution expense.
  2. B.an administrative expense.
  3. C.a trading expense.
  4. D.a finance expense.
Show the answer and explanation

Answer: A (a selling and distribution expense.)

Explanation

Carriage outwards is the cost of delivering goods to customers, so it is a selling and distribution expense.