Analysis of Financial Statements · Class 12 · CBSE · Commerce Accountancy
Under which major head and sub-head in the Statement of Profit and Loss of a company are 'Salaries and Wages' recorded?
Practice question from Analysis of Financial Statements (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-7F70B9
Under which major head and sub-head in the Statement of Profit and Loss of a company are 'Salaries and Wages' recorded?
- A.Revenue from Operations, Other Income
- B.Expenses, Cost of Materials Consumed
- C.Expenses, Employee Benefit ExpensesCorrect answer
- D.Expenses, Other Expenses
Solution
Salaries, wages, bonus, and staff welfare expenses are direct payments to or for the benefit of employees, hence they are recorded under the sub-head 'Employee Benefit Expenses' under the major head 'Expenses' in the Statement of Profit and Loss.
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