Cost of Sales Is Calculated by Subtracting Opening Inventory from Purchases

question 23

True/False

Cost of sales is calculated by subtracting opening inventory from purchases and adding closing inventory

---

Definitions:

Convertible Notes

Debt instruments that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the note holder.

Liability

A present obligation of the entity to transfer an economic resource as a result of past events.

Equity

The value of an owner's interest in a property or business, after subtracting liabilities.