If a merchandising company ends a period with a larger inventory than it owned at the beginning of the period,then:

Question

Quizplus · Accepted Answer

A larger ending inventory compared to the beginning inventory implies that the cost of goods sold was smaller than the net purchases. In other words, the company purchased more goods than it sold during the period, resulting in an increase in inventory. Therefore, choice C is the best answer.

If a Merchandising Company Ends a Period with a Larger