Which of the Following Is the Equation for Cost of Goods

question 19

Multiple Choice

Which of the following is the equation for cost of goods sold?

• A) Beginning inventory + net purchases - Ending inventory
• B) Beginning inventory + net purchases + Ending inventory
• C) Net purchases - Beginning inventory
• D) Ending inventory + net purchases - Beginning inventory

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Definitions:

Non-Operating Gains

Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.

Retirement of Notes Payable

The process of paying off or settling a debt obligation represented by promissory notes.

Cash Flows from Operating Activities

The section of a company's cash flow statement that represents the amount of money a company brings in from its regular business activities.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.