Which of the following items are shown in a company's Balance Sheet?

Show Answers

Only the closing inventoryOnly the owner's withdrawalsBoth the closing inventory and owner's withdrawalsClosing inventory, owner's withdrawals, prepaid rent, and unearned interestNone of the above

Explanation

Closing inventory (stock at year-end), owner's drawings (amounts taken out by the owner for personal use), prepaid rent (rent paid in advance), and interest received but not yet earned (interest collected for future periods) are all reported in the Balance Sheet. However, opening inventory (stock at the beginning of the year) is recorded in the Trading Account and does not appear on the Balance Sheet. Therefore, option D, which includes all relevant items except opening stock, is the correct choice.