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.