Question

Non departmental items of expenses are
(a) Charged to Departments on the basis of total sales (b) Charged to the General Profit and Loss account (c) Charged to departments according to the fixed assets employed (d) None

Answer 1

Answer:

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Answer 2

The correct answer is OPTION B: Non-departmental items of expenses are charged to the general profit and loss account.

• A profit and loss statement summarises revenue, expenditures, and spending for a certain period time usually a quarter or fiscal year.
• These records show a company's ability (or inability) to make money through increasing revenue, cutting costs, or doing both.
• In these statements, the cash or accrual basis is usually employed.