Which statements regarding the financial statements of a sole trader are correct?
1 Cash drawings for the year are recorded in the income statement.
2 Gross profit for the year is shown in the statement of financial position.
3 Prepayments only appear in the income statement.
4 Trade receivables appear in the statement of financial position.
1 )
1 and 2
2 )
2 and 3
3 )
3 and 4
4 only
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