Opening inventory

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March 20, 2023 at 5:06 am #681534
Muhammadi
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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!
March 20, 2023 at 8:56 am #681581
John Moffat
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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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