Which of the following would appear as an operating expense in the Profit & Loss Account of a trading firm?

Freight inward

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Freight outward

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Sales returns and allowances

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Purchases returns and allowances

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Solution

The correct option is A Freight outward
The Profit and Loss A/c record all those amounts which are related with sale of goods. Freight Outward is the expenses paid on transportation of goods which are meant for sale purpose. Thus, has to be recorded in the profit & loss account.

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Which of the following would appear as an operating expense in the Profit & Loss Account of a trading firm?

The correct option is A Freight outwardThe Profit and Loss A/c record all those amounts which are related with sale of goods. Freight Outward is the expenses paid on transportation of goods which are meant for sale purpose. Thus, has to be recorded in the profit & loss account.

The correct option is A Freight outward
The Profit and Loss A/c record all those amounts which are related with sale of goods. Freight Outward is the expenses paid on transportation of goods which are meant for sale purpose. Thus, has to be recorded in the profit & loss account.