Accounting · Final Accounts
Which of the following statements is accounting-wise correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Income tax is classified as a trade expense for a sole proprietorship.
- 2Closing stock shown inside the Trial Balance is recorded only in the Balance Sheet.✓
- 3Prepaid Expenses Account is a Nominal Account.
- 4An advance received from a customer is credited directly to the Profit and Loss Account as an income.
Correct answer
Closing stock shown inside the Trial Balance is recorded only in the Balance Sheet.
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