The sum of the cost of goods sold and the ending inventory equals the cost of goods available for sale.

Question

Quizplus · Accepted Answer

This is known as the basic accounting equation for inventory, stating that the total cost of goods available for sale is either sold or in inventory at the end of the period. So, if we add the cost of goods sold and the ending inventory, it will give us the total cost of goods available for sale.

The Sum of the Cost of Goods Sold and the Ending