Commerce Exam > Commerce Questions > All direct expenses are ___ to Trading accoun...
Start Learning for Free
All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss account
- a)Credited , Debited
- b)Debited, Credited
- c)Credited , Credited
- d)Debited, Debited
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
All direct expenses are ___ to Trading account and all indirect expens...
Explanation:
The given statement states that all direct expenses are credited to the Trading account and all indirect expenses are debited to the Profit and Loss account. Let's break down the statement and understand it in detail:
Direct Expenses:
- Direct expenses are those expenses that are directly related to the production or purchase of goods or services.
- These expenses can be easily traced to a particular product or service.
- Examples of direct expenses include the cost of raw materials, direct labor, direct wages, etc.
Trading Account:
- The Trading account is a part of the final accounts of a business.
- It shows the gross profit or loss made by a business during a specific period.
- The direct expenses are credited to the Trading account because they are directly related to the production or purchase of goods or services.
Indirect Expenses:
- Indirect expenses are those expenses that are not directly related to the production or purchase of goods or services.
- These expenses cannot be easily traced to a particular product or service.
- Examples of indirect expenses include rent, salaries, advertising expenses, etc.
Profit and Loss Account:
- The Profit and Loss account is a part of the final accounts of a business.
- It shows the net profit or loss made by a business during a specific period.
- The indirect expenses are debited to the Profit and Loss account because they are not directly related to the production or purchase of goods or services.
Therefore, based on the given statement, the correct answer is option D: Debited, Debited.
View all questions of this test
The given statement states that all direct expenses are credited to the Trading account and all indirect expenses are debited to the Profit and Loss account. Let's break down the statement and understand it in detail:
Direct Expenses:
- Direct expenses are those expenses that are directly related to the production or purchase of goods or services.
- These expenses can be easily traced to a particular product or service.
- Examples of direct expenses include the cost of raw materials, direct labor, direct wages, etc.
Trading Account:
- The Trading account is a part of the final accounts of a business.
- It shows the gross profit or loss made by a business during a specific period.
- The direct expenses are credited to the Trading account because they are directly related to the production or purchase of goods or services.
Indirect Expenses:
- Indirect expenses are those expenses that are not directly related to the production or purchase of goods or services.
- These expenses cannot be easily traced to a particular product or service.
- Examples of indirect expenses include rent, salaries, advertising expenses, etc.
Profit and Loss Account:
- The Profit and Loss account is a part of the final accounts of a business.
- It shows the net profit or loss made by a business during a specific period.
- The indirect expenses are debited to the Profit and Loss account because they are not directly related to the production or purchase of goods or services.
Therefore, based on the given statement, the correct answer is option D: Debited, Debited.
Most Upvoted Answer
All direct expenses are ___ to Trading account and all indirect expens...
Direct expense are those... Which are directly helping in the production.. Or manufacturing (eg. Freight, octri, factory rent etc) so they are debited to the trading account... And indirect expense are those which are indirectly helping in production process (eg advertisement expenses, carriage outward, postage etc) so they are debited to profit and loss account
Free Test
FREE
| Start Free Test |
Community Answer
All direct expenses are ___ to Trading account and all indirect expens...
As Direct expenses are directly related to production , so they go in TRADING A/c
& Indirect expenses are reverse of Direct Expenses, so they go in P&L A/c.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Question Description
All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer?.
All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer?.
Solutions for All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup