What Is the Formula Used to Calculate Net Purchases

question 15

Multiple Choice

What is the formula used to calculate net purchases?

• A)Purchases less Purchase Returns and Allowances plus Purchase Discounts less freight-in
• B)Purchases plus Purchase Returns and Allowances less Purchase Discounts plus freight-in
• C)Purchases less Purchase Returns and Allowances less Purchase Discounts plus freight-in
• D)Beginning Inventory less Purchases

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Definitions:

Emerging Industries

Sectors that are in their initial stage of development, often characterized by high innovation and growth potential.

Production Chain

A series of steps involved in producing a product, from raw material extraction to the final goods being made available to consumers.

Services

Economic activities that provide intangible benefits or goods, such as healthcare, education, and entertainment.

Manufacturing

The process of converting raw materials or components into finished goods using tools, human labor, machinery, and chemical processing.