Liquidation Is When a Company Sells or Divests Itself of a Business

question 77

True/False

Liquidation is when a company sells or divests itself of a business or part of a business.

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Definitions:

Period-End Inventory

The total value of all inventory still available for sale by a company at the end of an accounting period.

Gross Profit

Gross profit is the difference between the sales revenue and the cost of goods sold, illustrating how much a company earns from selling its products before other expenses are deducted.

Cost Of Goods Available

The total cost of merchandise a company has for sale, which includes the beginning inventory plus the cost of goods purchased minus ending inventory.

Ending Inventory

The total value of all the goods that a company has in stock at the end of its accounting period.