Question

During the costing process, to arrive at the closing stock of a trading business, which one of the following formula is applied?

• A. Opening stock + Purchases - Cost of goods sold
• B. Opening stock + Purchases + Cost of goods sold
• C. Opening stock - Purchases - Cost of goods sold
• D. None of the above

Answer 1

The correct option is A

Opening stock + Purchases - Cost of goods sold

Closing stock
= Opening stock + Purchases - Cost of goods sold.