Is freight outwards an expense?
Understand the Problem
The question is asking whether 'freight outwards' is considered an expense in accounting terms. This relates to the classification of costs in financial statements.
Answer
Freight outwards is an expense.
Freight outwards is an expense.
Answer for screen readers
Freight outwards is an expense.
More Information
Freight outwards is typically considered a selling expense, which is expensed when incurred. It is associated with the cost of shipping goods to customers.
Tips
Common mistakes include incorrectly classifying freight outwards as an operating expense or including it in the cost of goods sold. It should be classified as a selling expense instead.
Sources
- How is freight in and freight out treated in the financial statements? - universalcpareview.com
- Freight Out Charges: Definition and How to Record Them | Indeed.com - indeed.com
- Freight out definition - AccountingTools - accountingtools.com
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