If Beginning Inventory (BI) + Purchases (P) - Ending Inventory

question 22

Multiple Choice

If Beginning Inventory (BI) + Purchases (P) - Ending Inventory (EI) = Cost of Merchandise Sold (COMS) , an equivalent equation can be written as?

• A) BI + P = COMS - EI
• B) BI - P = COMS + EI
• C) BI + P = COMS + EI
• D) EI + P = COMS - BI

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Definitions:

Rate Of Return

A measure of the profitability of an investment, calculated as a percentage of the original investment.

Net Value

The difference between the total benefits and total costs associated with an economic activity or transaction.

Long Run Deficit

A fiscal situation where a government consistently spends more than it earns over an extended period, leading to sustained budget deficits.