Multiple choice

Directions: Choose the correct option for the given question:

Abnormal loss should be transferred to

  1. capital account

  2. material account

  3. cash account

  4. costing profit and loss account

  5. abnormal loss account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Abnormal losses are non-recurring and not part of the normal production process. To avoid distorting the cost of production, these losses are transferred to the costing profit and loss account.

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