Question

16. In order to find out the value of the closing stock during the end of the financial year we, 1. do this by stocktaking 2. deduct the cost of goods sold from sales 3. deduct opening stock from the cost of goods sold 4. look in the stock account​

Answer 1

Answer:

deduct opening stock from the cost of goods sold

Answer 2

The correct answer is OPTION 1: Do this by Stocktaking.

• Every business must account for the value of its trading stock after each fiscal year (close stock) and the start of the next fiscal year (open stock).
• Trading stock is anything that our organization buys, makes, or sells to make, sell to make, or exchange.
• For each personal trading stock we use, we'll need to open a new account.
• To guarantee that our records are accurate, conduct a stocktake, which counts and evaluates all of our company's commodities, goods, and inventory.
• A stocktake assesses the value of our trade stock at the end of the fiscal year, whether for commercial or tax purposes.