Question

3 In financial statements, the number of units shown to be sold is ___________ than the...

3 In financial statements, the number of units shown to be sold is ___________ than the number of the units produced. Select one: a. the same. b. lower. c. higher. d. either higher or lower.

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Answer #1

ANSWER

CORRECT OPTION : Option (d) : either Higher or Lower

EXPLANATION :

  • In financial statements, the number of Units shown to be sold can be HIGHER than the number of units produced in case the current year produced stock is sold along with the Opening Stock carried forward from previous year's stock

OR

  • the number of Units shown to be sold can be LOWER than the number of units produced in case the sales are very poor and the company has failed to sell even currently produced stock.
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