Asked by Ashlee Tennell on May 13, 2024
Verified
Beginning inventory plus net purchases is:
A) Cost of goods sold.
B) Merchandise (goods) available for sale.
C) Ending inventory.
D) Sales.
E) Shown on the balance sheet.
Net Purchases
The total purchases of inventory less returns, allowances, and discounts over a specific period.
Merchandise Available for Sale
The total quantity of goods that a retailer has on hand and ready to sell to customers.
Beginning Inventory
The value of all inventory held by a company at the start of an accounting period.
- Ascertain and measure significant financial indicators such as gross profit, cost of goods sold, and sales discounts.
Verified Answer
JG
Jeron GallimoreMay 16, 2024
Final Answer :
B
Explanation :
Beginning inventory refers to the value of goods that a company has on hand at the start of a period, and net purchases is the value of inventory acquired during the period. When these two values are added together, we get the total value of merchandise (goods) available for sale during the period. Therefore, the correct answer is B - merchandise (goods) available for sale.
Learning Objectives
- Ascertain and measure significant financial indicators such as gross profit, cost of goods sold, and sales discounts.