The Cost of goods available for sale is equal to the:

Question

Quizplus · Accepted Answer

The cost of goods available for sale includes both the cost of goods sold and the ending inventory. Therefore, the equation is Cost of goods sold plus ending inventory. Option A subtracts the ending inventory from the cost of goods sold, which is incorrect. Option B subtracts the cost of goods sold from sales revenue, which is not relevant to this question. Option D adds sales revenue to ending inventory, which is incorrect.

The Cost of Goods Available for Sale Is Equal to The