Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
Payment of Income Tax is considered what type of expense?
Options:
Indirect Expenses
Operating Expenses
Direct Expenses
None of these
Correct Answer:
Indirect Expenses
Explanation:
Indirect expenses like salaries, insurance, legal charges, rent, rates, and taxes all fall under business and administration expenses. These expenses are concerned with the administration of the business of an organization.