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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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