Multiple choice

All direct and indirect expenditures are charged to the P & L account.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Explanation: All direct expenses are debited to the Trading or manufacturing account. All indirect expenses are debited to the P & L Account. (here direct expenses means the expenditure directly connected with the purchase or manufacture of the goods like carriage inwards, Fuel, etc)

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