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Question

Wages is an example of _________.
  1. capital expenses
  2. indirect expenses
  3. direct expenses
  4. revenue expenses

A
indirect expenses
B
capital expenses
C
direct expenses
D
revenue expenses
Solution
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Wages paid to workers. Workers are the people who are producing the material and directly associated with production activity. Such wages is a direct expenses.

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Objective type Questions
Classify the following accounts under the types of personal, Real and Nominal account.

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14) Furniture A/c
15) Import duty A/c
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21) Profit on sale of furniture A/c
22) Office equipment A/c
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Q5

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