In the accounts of a limited company, remuneration paid to directors, during the current accounting period, in respect of the same period . . .?
Select ONE answer:
- is shown as an appropriation of profit.
- is shown as part of the company’s cost of sales.
- is shown as an expense in the profit and loss account.
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct – Remuneration paid to directors , during the current accounting period, in respect of the same period is an expense, and, just like any other expense, is charged as an expense in the profit and loss account (in accordance with the accruals concept).
- Not correct
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