Carriage inwards is charged to the trading accounts because: a. It should not go in the statement of a financial position b. It is not part of purchases of goods c. Sales returns also goes in the trading account d. It is basically part of the cost of buying goods

Carriage Inward is charged when the purchases are made and the buyer is required to pay for these…

Answered: Carriage inwards is charged to the trading accounts because: a. It should not go in the statement of a financial position b. It is not part of…

FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

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Question

Carriage inwards is charged to the trading accounts because:

	a.	It should not go in the statement of a financial position
	b.	It is not part of purchases of goods
	c.	Sales returns also goes in the trading account
	d.	It is basically part of the cost of buying goods

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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