Question

Purchase of goods for reselling is shown in the Statement of Profit and Loss under ______.

Options

• Changes in inventories 

• Cost of materials consumed 

• Purchase of stock-in-trade 

• None of the above

Answer 1

Purchase of goods for reselling is shown in the Statement of Profit and Loss under Purchase of stock-in-trade.

Explanation:

Purchase of products for resale is recorded as Purchase of Stock-in-Trade in the profit and loss statement under the heading 'Expenses.'