Cost of Goods Sold Is Equal to

question 68

Multiple Choice

Cost of goods sold is equal to

• A)the total amount of merchandise purchased during the year.
• B)the cost of merchandise purchased plus transportation-in costs less ending inventory.
• C)the cost of merchandise purchased plus transportation-in costs plus beginning inventory minus purchase returns and allowances and purchase discounts minus ending inventory.
• D)the cost of merchandise purchased plus transportation-in costs plus beginning inventory minus purchase returns and allowances and purchase discounts.

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Definitions:

Serous Membrane

A thin layer of tissue that lines certain internal cavities of the body, secreting a serous fluid to lubricate and reduce friction between internal organs.

Visceral

Relating to the internal organs.

Parietal Pleura

The outer membrane that lines the inner surface of the chest wall and diaphragm in the thoracic cavity, but does not cover the lungs directly.

Peritonitis

Inflammation of the peritoneum, the thin tissue that lines the inner wall of the abdomen and covers most of the abdominal organs.