Accounting for IGCSE & O level - Final Statements (Section 11 - No. 5)
Which of the following statements is true regarding the closing inventory at the end of an accounting year?
The closing inventory is part of the cost of sales
The closing inventory will not be included in the financial position of the business
The closing inventory reduces the business's profit
The closing inventory will become the opening inventory in the next accounting year
Explanation
Closing inventory becomes the opening inventory for the next accounting year.
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