1.3 EXPENSES

Question 1

Expenses

Answer 1

Any expenditure necessary to carry on the business (or to maintain and repair fixed assets)

Question 2

Examples of expenses in the trading account

Answer 2

Purchases
Sales returns
Carraige in
customs duuty

Question 3

Examples of expenses in the profit & loss account

Answer 3

Motor expenses
light and heat
rent
wages
salaries
esb
carraige out
discounts allowed
repairs
packing materials
bank charges
travel expenses
sundry expenses
telephone
advertising
bad debts
commission
interest (on a loan)
rates
postage
stationery

Question 4

what is carraige out

Answer 4

The cost for delivering goods/transporting goods to customers

Question 5

What is discount allowed

Answer 5

Discount given to good customers eg. who pay on time
-costs the business - expense

Question 6

bad debts

Answer 6

Debt that has gone bad, cannot be payed
-expense for the business

Question 7

what are rates

Answer 7

Local charge paid to the local council by a business.