Question

Closing stock of the previous year becomes the opening stock of the current year.

• A. True
• B. False

Answer 1

The correct option is A True

Closing stock means the number of goods at the end of accounting year and opening stock is the amount of goods at the start of accounting year.

The stock left at the end of year is carried froward to be used next year and hence, the closing stock of previous year becomes opening stock of current year.