Which of the Following Formulas Determine Cost of Goods Sold

question 183

Multiple Choice

Which of the following formulas determine cost of goods sold in a merchandising entity?

• A) Beginning inventory + Purchases + Ending inventory = Cost of goods sold
• B) Beginning inventory + Purchases - Ending inventory = Costs of goods sold
• C) Beginning inventory - Purchases + Ending inventory = Cost of goods sold
• D) Beginning inventory - Ending inventory - Purchases = Cost of goods sold

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Definitions:

Time To Maturity

The remaining duration until a financial instrument reaches its fixed expiration or redemption date.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Reconciliation Of Profit

The process of adjusting the profit or loss figures from one accounting period to another to take into account differences caused by transactions, accounting methods, or errors.