35. 36. The cost of goods sold is: (a) purchases (b) opening stock + purchases (c) sales closing stock (d) opening stock + purchases closing stock The value of closing stock in the trading account is usually found by: (a) deducting the purchases from sales (b) counting the stock and valuing it at cost price (c) counting the stock and valuing it at selling price (d) using a fixed percentage of sales The matching concept means that: (a) for every debit there must be a credit (b) expenses should be matched in time with relevant revenue (c) expenses equal revenues (d) expenses should be matched with sales 37. 38. The method of stock valuation that compares the cost of goods sold with the prices of the most recently purchased goods is the: (a) LIFO method (b) FIFO method (c) average unit cost method (d) weighted average unit cost method 39. Which of the following errors will not be revealed by the trial balance? (a) error of transposition (b) compensating error (c) casting error in general ledger (b) posting incorrect amount to general ledger