Which of the following is a direct expense? MCQ with Answer and Explanation

Question
Which of the following is a direct expense?
A. Carriage inwards
B. Factory rent
C. Office salaries
D. Advertising
Answer: Option A
Solution (By JKSSB Mock Tests)
Carriage inwards is a direct expense because it is directly attributable to the purchase of goods and bringing them to the place of business.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Anti-Profiteering Authority' under GST ensures:
A. Benefits of tax rate reduction are passed to consumers
B. Suppliers charge high prices
C. Companies do not make profit
D. Tax evasion is prevented
Discuss
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Correct Answer: Option A

Explanation:
It ensures that reduction in tax rates or benefit of ITC is passed on as commensurate price reduction.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Revenue Recognition' under Ind AS 115 is based on:
A. Receipt of cash
B. Transfer of risks and rewards
C. Transfer of control of goods or services to the customer
D. Invoice issuance
Discuss
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Correct Answer: Option C

Explanation:
Ind AS 115 uses a five-step model based on transfer of control.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Government Accounting Standards Advisory Board' (GASAB) was established by:
A. ICAI
B. RBI
C. Ministry of Finance
D. Comptroller and Auditor General (CAG) of India
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Correct Answer: Option D

Explanation:
GASAB is under CAG to formulate accounting standards for government.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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