Purchases + opening stock - cost of goods sold = closing stock
Opening stock + purchases - closing stock = cost of goods sold
Closing stock - cost of goods sold - purchases = Opening stock
Cost of goods sold + closing stock - purchases = Opening stock
Answer is Wrong!
Answer is Right!
The correct answer is C. Closing stock – cost of goods sold – purchases = Opening stock.
The equation for cost of goods sold is:
Cost of goods sold = Opening stock + Purchases – Closing stock
Therefore, the equation for opening stock is:
Opening stock = Cost of goods sold + Purchases – Closing stock
The equation for closing stock is:
Closing stock = Cost of goods sold + Purchases – Opening stock
Therefore, the equation C. Closing stock – cost of goods sold – purchases = Opening stock is not correct.