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Opening inventory

MMuhammadullah3y ago
Does opening inventory belong in the P/L account? I think it does ,but the kit says it doesn’t. What is the correct answer? Thanks!
John MoffatJohn MoffatTutor3y ago#1
We do not call it the P?L account - it is called the Statement of Profit or Loss. This is a bit of a trick question. It is the cost of sales that appears in the SOPL (the opening and closing inventory are just used to be able to calculate the cost of sales).
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