Given the Following Data, What Is the Cost of Purchases

question 41

Multiple Choice

Given the following data, what is the cost of purchases?
$\begin{array} { l r } \text { Sales revenue } & \$ 725,000 \\\text { Cost of goods sold } & 345,000 \\\text { Ending inventory } & 250,000 \\\text { Beginning inventory } & 120,000\end{array}$

• A) $595,000
• B) $465,000
• C) $475,000
• D) $370,000

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Definitions:

Timeliness

The aspect of delivering or completing a task within an expected or designated timeframe.

Faithful Representation

A fundamental qualitative characteristic in financial reporting, ensuring that financial statements are complete, neutral, and free from material error.

Flexibility

The ability of a company or system to adapt to changes or new requirements.

Accounting Information

Financial data and records about an organization's transactions, used for reporting, analysis, and decision-making purposes.