Which of the Following Formulae Determine Cost of Goods Sold

question 43

Multiple Choice

Which of the following formulae determine cost of goods sold in a retail sector company?

• A)Beginning inventory - Ending inventory - Purchases = Cost of goods sold
• B)Beginning inventory + Purchases + Ending inventory = Cost of goods sold
• C)Beginning inventory + Purchases - Ending inventory = Costs of goods sold
• D)Beginning inventory - Purchases + Ending inventory = Cost of goods sold

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities. It represents ownership equity spread among shareholders.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders.

Total Dividends

The cumulative amount of dividends that a company pays out to its shareholders over a specific period.