Which of the following items of expense involves actual cash payment?
-
A.
Discounts allowed -
B.
Provision for depreciation -
C.
Carriage outwards -
D.
Allowance for doubtful debts
Correct Answer: Option C
Explanation
Carriage refers to the cost of transporting goods into a business from a supplier, as well as the cost of transporting goods from a business to its customers. Carriage outwards is the shipping and handling costs incurred by a company that is shipping goods to a customer.