On the statement of income, the beginning inventory is added to the cost of goods purchased to determine the
A)cost of goods sold.
B)cost of goods available for sale.
C)income from operations.
D)gross profit.

Question

Quizplus · Accepted Answer

The beginning inventory, when added to the cost of goods purchased, gives the total cost of goods available for sale. This figure is crucial for calculating the cost of goods sold, but it directly represents the total inventory that could potentially be sold during the period.

On the Statement of Income, the Beginning Inventory Is Added