Accounting Multiple Choice Question – 26 April 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Carriage inwards is included in the cost of sales calculation because …?

Select ONE answer:

  1. it is a cost associated with the purchase of goods.
  2. it should not be shown in the balance sheet.
  3. carriage outwards is shown as an expense in the profit and loss account.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct
  2. Although it is correct that carriage inwards should not be shown in the balance sheet, this is not a reason why it should be included in the cost of sales calculation.
  3. Although it is correct to include carriage outwards as an expense in the profit and loss account, this is not a reason why carriage inwards should be included in the cost of sales calculation.

 

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