Multiple choice

Which one of the following is correct?

  1. The term 'Purchases' include the purchases of fixed assets for cash as well as on credit

  2. The term 'Sales' include the sales of fixed assets for cash as well as on credit

  3. The term 'closing stock' means the goods lying unsold at the end of accounting period

  4. The term 'Operating stock' means the goods lying unsold at the beginning of current accounting period
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Closing stock is the amount of inventory that a business still has on hand at the end of a reporting period.

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