Question

What is the correct formula for calculation of closing stock?

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

Answer 1

The correct option is A

Opening stock + Direct expenses - Cost of goods sold

Closing stock = Opening stock + Direct expenses - Cost of goods sold