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

The correct answer is C. Carriage outwards

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.

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