The First Step in Using the Gross Profit Method to Estimate

question 108

Multiple Choice

The first step in using the gross profit method to estimate ending inventory is to:

• A) calculate the cost of goods available for sale.
• B) estimate the ending inventory.
• C) estimate the beginning inventory.
• D) estimate the cost of goods sold.
• E) calculate net income.

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Definitions:

Referentiality

The property of words or symbols to refer to objects, actions, or ideas beyond themselves.

Communication System

The arrangement and use of symbols, tools, and techniques to convey messages or information between entities.

Necessary Criteria

Essential conditions or requirements that must be met for a particular concept, phenomenon, or category to apply or be considered valid.

Morpheme

The smallest meaningful unit of language.