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WAEC Financial Accounting 2022 Question 35

Question 35

Company Accounts

An item that would be classified as preliminary expenses in a company's account is

  1. A.formation expenses
  2. B.general expenses
  3. C.administrative expenses
  4. D.distribution expenses.
Show the answer and explanation

Answer: A (formation expenses)

Explanation

Preliminary expenses are the costs of forming the company.