Start learning →

With no link to revenue, a cost like administration is

Adeferred till the product is sold
Bspread over five years
Ccarried as an asset forever
Drecognised at once as an expense
Answer & Solution
Correct answer: D. recognised at once as an expense
Costs with no connection to specific revenue cannot be matched, so they are charged at once.
Practise this question with Quill — CA Foundation →

Keep practising Accounting Concepts

Browse all Accounting Concepts questions for CA Foundation, or explore more Accounting topics.

Start a Accounting Concepts lesson →
Related questions