Accounting WAEC

The cost of putting goods into a saleable condition is charged to?

A. Balance sheet
B. Trial balance
C. Profit and loss account
D. Trading account

Correct Answer: Option C

C. Profit and loss account

Explanation

Profit and loss account is an account in the books of an organization to which incomes and gains are credited and expenses and losses debited, so as to show the net profit or loss over a given period. It includes the cost of materials both direct and indirect that were used up in the production process to convert the product into saleable and consumable goods.

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