State True or False: a) Drawer and payee may or may not be the same person in case of a Bills receivable. b) When Adjusted Purchases are given, closing stock will appear in Trading... State True or False: a) Drawer and payee may or may not be the same person in case of a Bills receivable. b) When Adjusted Purchases are given, closing stock will appear in Trading Account as well as Balance Sheet.
Understand the Problem
The question is asking to determine whether the statements regarding bills receivable and adjusted purchases in accounting are true or false. The first statement relates to the relationship between the drawer and payee, while the second concerns the representation of closing stock in financial statements.
Answer
a) True, b) True
a) True, b) True
Answer for screen readers
a) True, b) True
More Information
a) In bills receivable, the drawer and payee can be the same person if the drawer retains the bill; otherwise, they are different. b) Closing stock is listed in the Trading Account as it affects the gross profit calculation and in the Balance Sheet as an asset.
Tips
Ensure understanding of terms like drawer, payee, and how closing stock impacts financial statements.
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