Asked by Kevin Patel on Jul 17, 2024
Verified
Beginning inventory plus purchases equals
A) cost of goods available for sale.
B) cost of goods sold.
C) ending inventory.
D) total inventory on hand.
Beginning Inventory
The total worth of a company's inventory at the beginning of a financial period.
Purchases
Items bought or acquired by a company for various purposes, primarily for resale in the course of business.
Cost Of Goods Available
The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.
- Perform calculations and understand key formulas found in merchandising financial statements, including those for gross profit and net income.
Verified Answer
TK
Taarun KumarJul 21, 2024
Final Answer :
A
Explanation :
Beginning inventory plus purchases equals the cost of goods available for sale. This includes all the goods that are available to be sold during a period, before subtracting the ending inventory to find the cost of goods sold.
Learning Objectives
- Perform calculations and understand key formulas found in merchandising financial statements, including those for gross profit and net income.
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