With respect to final accounts, which of the following statements is incorrect?
1
If the balance of an account is on the debit side of the trial balance where profit has already been liquidated, it is treated as an expense.
2
When an asset is acquired, it gives rise to expenditure and when it is consumed, it gives rise to cost.
3
If the debit side of the trading account exceeds its credit side, the balance is said to be gross profit.
4
Unsold cost of goods sold = gross profit