Closing stock appears ………in the final accounts.

The value closing stock has got an effect on the profit for the period.

In the balance sheet, the net profit is added to capital.

Drawings might also take the …….of goods for private use

Drawings can be in the form of business facilities.

If drawings is in the form of goods, it is necessary to show a……….from purchases in the trading caccount.

An accrual of expense remains ………at the end of that period.

An accrued expense is shown amongst the liabilities in the balance sheet.

A prepaid expense requires no year-end adjustment.

A debit balance on the insurance account means that insurance premiums have been paid in advance.

The prepaid amount is …………..from the figure shown in the trial balance when including the item in the profit and loss account.

A prepaid expense is added to the expense item from the trial balance.