Which of the following items of expense involves actual cash payment?
Discounts allowed
Provision for depreciation
Carriage outwards
Allowance for doubtful debts
Correct answer is C
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.