CBSE · Class 11 · Accountancy · Financial Statements - IIWhich of the following is an example of a direct expense?
Step-by-Step Solution
Wages paid for production is a direct expense because it is directly related to the manufacturing or production of goods. Other options like office rent, advertising, and salary of office staff are indirect expenses related to administration and selling.
Detailed Options Breakdown
Option : Office rent
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 1: Wages (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Advertising
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 3: Office staff salary
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - II. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - II Revision Notes.