Question

Audit fees in general is to be treated as expenses

Answer 1

Answer:

Audit fees is indirect expenses. Therefore I will be shown on debit side of profit and loss account

Hope it helps you

Answer 2

QUESTION:-

Audit fees in general is to be treated as expenses

ANSWER:-

• The statement is TRUE
• Audit fees in general is to be treated as expenses

EXPLANATION:-

• According to several accounting laws, the Auditing Of Accounts is performed by highly qualified and professional individuals. The auditing of accounts keeps records which are approved by the concerned administration.

• When any fees are expended to the auditors of the company or firm for audit of account then they are written under Audit Fees Account.

• And hence, the audit fee is a subtle expense and which is shown on the side of expenses in the profit and loss account. An unpaid audit fee is initially added to Audit Fees Account and then the exact amount is expressed on the side of liability in the Balance Sheet as outstanding expenses or expenses payable.

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