Question

Stock-in-trade does NOT include ______________.

• A. goods in the process of manufacture.
• B. raw materials.
• C. items held as fixed assets.
• D. finished goods.

Answer 1

Answer: (C)

items held as fixed assets.

Stock in trade means the stock which is purchased in the business for resale purposes.

Fixed assets are purchased in the business for taking the benefits in the coming years ahead. This are not purchased for resale.

Hence Stock in trade does not include fixed assets.