Question

Q5) From the following expenses which is recurring expenses?
(A) Insurance on goods sent
(B) Goods Clearing charges
(C) Advertisement Expense
(D) All of the above​

Answer 1

Answer:

it's (D) All of the above

Answer 2

Among all the options, all of these are the recurring expense as these all are the company's ongoing costs.

Explanation:

• All those expenses which are incurred after the goods have reached consignor's go down are referred as recurring or selling expenses.
• Selling expenses are known as recurring expenses.
• These expenses should not be taken into considered for the purpose of valuation of closing stock and abnormal loss.
• Some of the recurring expenses are advertisement expenses, printing and stationary, carriage outward, go down rent, insurance, salaries to employees etc.
• Here, all the options: Insurance on goods sent, Goods Clearing charges, Advertisement Expense are the expense which occurs on the regular basis working days of any firm.
• Hence, the correct answer among all the options is option (D) All of the above.