Question

Closing stock appearing in the trial balance indicates that ________________.

• A. Opening stock appears outside the trial balance.
• B. Opening stock has been adjusted into the stock figure.
• C. purchases have been included in the closing stock.
• D. Closing stock will appear only in the trading account.

Answer 1

Answer: (B)

Opening stock has been adjusted into the stock figure.

Closing stock is that stock of goods which is unsold at the end of the year. It is normally shown out of the trial balance.

If closing stock is appearing in the trial balance, it indicates that opening stock has been adjusted in to the stock figures.