Practice mode Accounting

Which of these appear in a business’s Balance Sheet: (i) closing stock, (ii) opening stock, (iii) drawings, (iv) prepaid rent, (v) interest received but not yet earned?

Correct answer A. (i), (iii), (iv) and (v) only

Explanation

Closing stock and prepaid rent are assets, interest received in advance is a liability, and drawings are deducted from capital. Opening stock appears only in the Trading Account.

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