The correct answer is: D. Closing stock + cost of goods sold – purchase = opening stock
The equation for cost of goods sold is:
Cost of goods sold = opening stock + purchases – closing stock
Therefore, the equation D. Closing stock + cost of goods sold – purchase = opening stock is not correct.
The other three equations are correct.
Equation A. Cost of goods sold + closing stock – purchase = opening stock is correct because it is the same as the equation for cost of goods sold.
Equation B. Opening stock + Purchase – closing stock = cost of goods
sold is correct because it is the same as the equation for cost of goods sold, but with the order of the terms reversed.Equation C. Opening stock + purchases + closing stock – cost of good sold is correct because it is the same as the equation for cost of goods sold, but with the terms “opening stock” and “closing stock” added together.