Closing stock appearing in the Trial Balance is shown in:
Correct answer: C. Balance Sheet only
- A. Trading A/c and Balance Sheet
- B. Profit and Loss A/c
- C. Balance Sheet only
- D. Trading A/c only
Explanation
When closing stock appears inside the Trial Balance, its adjustment has already been recorded, so it is shown only as a current asset in the Balance Sheet. Stock appearing outside the Trial Balance is shown in both Trading Account and Balance Sheet.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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