Which of the following terms best describes "Cost of goods available for sale"?
a. Cost of goods available for sale is an expense account.
b. Cost of goods available for sale is added to beginning inventory to determine cost of purchases during the period.
c. Cost of goods available for sale is subtracted from net sales to arrive at the gross margin
d. Cost of goods available for sale is allocated into cost of goods on hand and cost of goods sold at the end of the fiscal year
d
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The notification of an obligation to pay a vendor for merchandise that was ordered and received is known as a purchase order
Indicate whether the statement is true or false
An entity's physical count of inventories was lower than the inventory quantities shown in its perpetual records. This situation could be the result of the failure to record:
A. sales. B. purchases. C. sales returns. D. purchase discounts.
Fewer stockouts and tailored assortments translate into
A. higher prices for retailers. B. higher costs. C. lower sales. D. lower employee productivity. E. higher inventory turnover.
Gains and losses are not considered in audit testing, as they do not need to be disclosed
a. True b. False Indicate whether the statement is true or false