Which of the Following Is the Correct Formula to Calculate

question 87

Multiple Choice

Which of the following is the correct formula to calculate average merchandise inventory?

• A) Average merchandise inventory = (Beginning merchandise inventory - Ending merchandise inventory) / 2
• B) Average merchandise inventory = (Beginning merchandise inventory × Ending merchandise inventory) / 2
• C) Average merchandise inventory = (Beginning merchandise inventory / Ending merchandise inventory) / 2
• D) Average merchandise inventory = (Beginning merchandise inventory + Ending merchandise inventory) / 2

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Definitions:

Federal Government

A system of government in which powers and responsibilities are divided between a national government and state or provincial governments.

Surplus Federal Budget

A situation where the federal government's revenues exceed its expenditures within a given fiscal period.

National Saving

The total saving of a country, composed of the savings accumulated by both the private sector and the government, available for investment.

Aggregate Demand

A complete tally of the demand for goods and services in an economy, at an agreed upon price level during a precise time period.