How Do You Compute the Purchases from Suppliers

question 95

Multiple Choice

How do you compute the purchases from suppliers:

• A)Cost of goods sold + ending inventory + beginning inventory.
• B)Cost of goods sold - ending inventory - beginning inventory.
• C)Cost of goods sold + ending inventory - beginning inventory.
• D)Cost of goods sold - ending inventory + beginning inventory.

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Definitions:

Owner's Equity

The total assets of a business minus its total liabilities; represents the ownership interest of the shareholders or owner(s).

Required Assets

Assets that are necessary for a business or individual to achieve its goals, including tangible and intangible resources.

Long-Term Assets

Assets that will not be converted into cash within one year.

Patents

Legal documents granted by governments giving inventors exclusive rights to their inventions, preventing others from making, using, or selling the invention without permission for a certain period.