Multiple choice

Closing stock in the Trial Balance implies that

  1. it is already adjusted in the Opening Stock

  2. it is adjusted in the Purchase Account

  3. it is adjusted in the Cost of Sale Account

  4. it is adjusted in the Profit and Loss Account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It means that the purchases have been reduced to the extent of stock amount at the end of the period.

Keep practicing — related questions