Cost of Merchandise Sold Equals Beginning Inventory

question 21

Multiple Choice

Cost of merchandise sold equals beginning inventory:

• A)Plus net purchases plus ending inventory
• B)Plus net purchases minus ending inventory
• C)Minus net purchases minus ending inventory
• D)Minus net purchases plus ending inventory
• E)None of these

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to dividends and, in many cases, voting rights.

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Subscriptions Receivable

An amount owed by customers for subscription services or products that have been provided but not yet paid for.