If value of opening inventories increases, what happens to the value of gross profit?
A)decreases
B)increases
C)stays the same
D)gets closer to net profit

Name: If value of opening inventories increases, what happens to the value of gross profit? A)decreases B)increases C)stays the same D)gets closer to net profit
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Question

Quizplus · Accepted Answer

An increase in the value of opening inventories results in a higher cost of goods sold (assuming closing inventory and purchases remain constant), which in turn decreases the gross profit.

If Value of Opening Inventories Increases, What Happens to the Value