Which Statement Best Depicts the Inventory Cost Flow Equation

question 130

Multiple Choice

Which statement best depicts the inventory cost flow equation?

• A)Beginning inventory + Sales = Cost of sales + Ending inventory.
• B)Beginning inventory + Goods manufactured = Cost of sales + Ending inventory.
• C)Beginning inventory - Purchase returns = Cost of sales + Ending inventory.
• D)Ending inventory + Purchases = Cost of sales + Beginning inventory.

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Definitions:

Gold Standard

An arrangement whereby the currencies of most countries are convertible into gold at a fixed rate.

World War I

A global conflict that occurred from 1914 to 1918, involving many of the world's great powers divided into two opposing alliances: the Allies and the Central Powers.

International Financial System

The global network of government institutions, financial markets, currencies, and regulations that support international trade and investment.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.