The correct answer is: A. Current asset
Closing stock is a current asset because it is expected to be converted into cash within one year. It is the value of the goods that a company has on hand at the end of an accounting period.
Current assets are assets that are expected to be converted into cash within one year. They include cash, accounts receivable, inventory, and short-term investments.
Fixed assets are assets that have a long life and are not expected to be converted into cash within one year. They include land, buildings, equipment, and machinery.
Stock in hand is another name for inventory. Inventory is the value of the goods that a company has on hand at a given time. It includes raw materials, work in progress, and finished goods.
Direct income is income that is directly related to the cost of goods sold. It includes sales revenue, less cost of goods sold.
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