Which of the following equations is correct?
A) Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory.
B) Sales + Cost of Goods Sold = Gross Margin.
C) Beginning Inventory + Ending Inventory - Purchases = Cost of Goods Sold.
D) Income Before Taxes - Operating Expenses = Cost of Goods Sold.

Question

Quizplus · Accepted Answer

The correct equation for calculating ending inventory in accounting is Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory. This formula is fundamental in inventory management and accounting, reflecting how the value of inventory changes over an accounting period due to purchases and the cost of goods sold.

Which of the Following Equations Is Correct