The freight and insurance paid for acquiring goods or for making them saleable is ________.
debited to the trading account
The correct answer is option 4. The freight and insurance costs incurred for acquiring goods or making them saleable are typically debited to the trading account, as these are direct expenses related to the goods for sale. The other options are incorrect because these costs are not related to the profit and loss account but to the trading account.
Important Questions from Assets & Liabilities
Which of the following is NOT regarded as a capital expenditure?
Which concept enables the accountant to carry forward the values of assets and liabilities from one accounting period to the other without asking the question about usefulness and worth of the assets and recoverability of the receivables?
Which of the following is NOT regarded as a revenue expenditure?
Which one of the following is a revenue expenditure?
A trade mark is an example of ______.
