The beginning inventory plus cost of goods sold equals the cost of goods available for sale during the period.

Answer the following statement true (T) or false (F)


False

Beginning inventory + Purchases ? Purchase returns and allowances ? Purchase discounts + Transportation-in = Cost of goods available for sale
Cost of goods available for sale ? Ending inventory = Cost of goods sold
Thus:
Cost of goods available for sale = Ending merchandise inventory + cost of goods sold

Business

You might also like to view...

Which of the following statements is true?

a. Investments in commercial paper or U.S. Treasury bills must be treated as cash equivalents. b. Investments in stock cannot be treated as cash equivalents because they are not convertible into a known amount of cash. c. Investments which are convertible into a known amount of cash and mature within three months after the balance sheet date are treated as cash equivalents. d. Investments in money market accounts cannot be treated as cash equivalents because they do not have a specific maturity date.

Business

Which of the following guidelines for writing a message extending credit is FALSE?

a. The writer should include the credit terms in the message. b. The writer should include the payment date and penalty fee for late payment. c. The writer should omit any mention of sales promotion or resale. d. None of the above is false.

Business

________ is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals.

A. Leading B. Planning C. Organizing D. Quantifying E. Controlling

Business

The courts of one nation cannot question the actions undertaken by another nation within the

other nation's borders under the: A) Extradition doctrine. B) Comity doctrine. C) Sovereign immunity doctrine. D) Expropriation doctrine. E) Act of state doctrine.

Business