Which of the Following Formulas Represent Cost of Goods Sold

question 12

Multiple Choice

Which of the following formulas represent cost of goods sold for a merchandising business?

• A) Beginning Merchandise Inventory - Ending Merchandise Inventory = Cost of Goods Sold
• B) Purchases and Freight In + Ending Merchandise Inventory = Cost of Goods Sold
• C) Ending Merchandise Inventory + Purchases and Freight In - Beginning Merchandise Inventory = Cost of Goods Sold
• D) Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold

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Definitions:

Profitable

Describes a situation, venture, or entity that generates more revenue than the expenses incurred, resulting in financial gain.

Capital Account

In finance, a record of the financial transactions and investments between residents of a country and the rest of the world.

Capital Account

A national account that shows the net change in asset ownership for a country over a period of time.

Partnership Assets

Assets or property owned jointly by partners in a business partnership, used and managed for the benefit of the partnership.