State whether the following statement are True or False.

All direct expenses are debited to Trading account.

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Solution

True

Explanation: All the expenses that are directly related to the production, transportation and manufacture of goods are known as direct expenses. All direct expenses are debited to the Trading Account.

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Similar questions

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

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State whether the following statement are True or False. All direct expenses are debited to Trading account.

True Explanation: All the expenses that are directly related to the production, transportation and manufacture of goods are known as direct expenses. All direct expenses are debited to the Trading Account.

State whether the following statement are True or False.

All direct expenses are debited to Trading account.

True

Explanation: All the expenses that are directly related to the production, transportation and manufacture of goods are known as direct expenses. All direct expenses are debited to the Trading Account.