CBSE · Class 11 · Accountancy · Financial Statements - IWhich of the following is considered an indirect expense?
Step-by-Step Solution
Salaries, rent, advertising, and office expenses are related to administration, selling, and distribution, hence they are treated as indirect expenses and debited to the Profit and Loss Account.
Detailed Options Breakdown
Option : Wages
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 1: Carriage Inwards
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 2: Office Rent (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Freight on Purchases
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - I. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - I Revision Notes.