In Order to Determine Cost of Goods Sold in a Periodic

question 95

Multiple Choice

In order to determine cost of goods sold in a periodic inventory system we

• A)add purchases to beginning inventory.
• B)subtract ending inventory from beginning inventory.
• C)subtract ending inventory from cost of goods available for sale.
• D)subtract purchases from ending inventory.

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Definitions:

Deductions

To deduct or subtract; remove, take away.

Longevity

A long duration of life; lasting a long time.

Profit Sharing

A system by which employees receive a share of the profits of a business enterprise.

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for an employee's future benefit.