Financial Statements and Balance Sheets

Question 1

Selling and Distribution

Answer 1

The expenses generated from the sale of inventory and delivering the inventory to the customers eg. Doutful debts, frieght outwards, sales wages

Question 2

General and Administration

Answer 2

Office expenses and expenses that cannot be classified as selling and distribution or financial expenses eg. office wages, telephone

Question 3

Financial Expense

Answer 3

Expenses of raising money for the business, of providing credit to customers and bank charges eg. Interest on loan, bank fee