In departmental accounts administrative expense... - WAEC Accounting 2013 Question
In departmental accounts, administrative expenses are recorded in the
A
trading account
B
balance sheets
C
profit and loss account
D
profit and loss appropriation account
correct option: c
Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. Theseexpenses are related to the organization as a whole as opposed to an individualdepartment. Expenses included in the profit and loss account are Selling and distribution expenses, Freight & carriage on sales, Sales tax, Administrative Expenses, Financial Expenses, Maintenance, depreciation and Provisions and more.
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