Beginning inventory plus net purchases is:
A) Ending inventory.
B) Cost of goods sold.
C) Shown on the balance sheet.
D) Merchandise (goods) available for sale.
E) Sales.

Question

Quizplus · Accepted Answer

Beginning inventory is the amount of merchandise available for sale at the beginning of the period, and net purchases are the total amount of merchandise purchased during the period. Adding these two amounts gives us the total merchandise available for sale during the period, which is the ending inventory plus the cost of goods sold. Therefore, D is the correct answer, as it represents the merchandise (goods) available for sale.

Beginning Inventory Plus Net Purchases Is