Asked by Jodie Longoria on Jun 12, 2024
Verified
If Beginning Inventory (BI) + Purchases (P) - Ending Inventory (EI) = Cost of Merchandise Sold (COMS) , an equivalent equation can be written as?
A) BI + P = COMS - EI
B) BI - P = COMS + EI
C) BI + P = COMS + EI
D) EI + P = COMS - BI
Cost of Merchandise Sold
An expense account that reflects the direct costs associated with the goods sold by a company during an accounting period.
Equation
A mathematical statement that asserts the equality of two expressions, represented by the symbol "=".
- Understand the principles of inventory management and the impact on financial statements.
Verified Answer
CH
Carson HagerJun 12, 2024
Final Answer :
C
Explanation :
The equation BI + P - EI = COMS can also be rearranged as BI + P = COMS + EI.
Learning Objectives
- Understand the principles of inventory management and the impact on financial statements.
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