Which of the Following Is the Correct Formula to Calculate

question 87

Multiple Choice

Which of the following is the correct formula to calculate average merchandise inventory?

• A) Average merchandise inventory = (Beginning merchandise inventory - Ending merchandise inventory) / 2
• B) Average merchandise inventory = (Beginning merchandise inventory × Ending merchandise inventory) / 2
• C) Average merchandise inventory = (Beginning merchandise inventory / Ending merchandise inventory) / 2
• D) Average merchandise inventory = (Beginning merchandise inventory + Ending merchandise inventory) / 2

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Definitions:

Black and White

A phrase often used to describe situations, thinking, or images that are clearly defined and without any grey areas or ambiguity.

Gestalt Principles

A theory of visual perception that emphasizes how people tend to organize visual elements into groups or unified wholes when certain principles are applied.

Months

Periods of time in the Gregorian calendar, each consisting of 28 to 31 days.

Size Constancy

A perceptual phenomenon where the perceived size of an object remains constant despite changes in its distance from the observer.