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    • Question

      The cost of sales is equal

      to:
      A Opening stock plus purchases Correct Answer Incorrect Answer
      B Purchases minus closing stock Correct Answer Incorrect Answer
      C Opening stock plus purchases minus closing stock Correct Answer Incorrect Answer
      D Closing stock minus opening stock Correct Answer Incorrect Answer

      Solution

      Cost of Sales = Opening Stock + Purchases – Closing Stock. This formula adjusts purchases to reflect the inventory actually used during the period.

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