📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Which of the following is an Expense for an accounting

    year
    A Cost of entire goods produced Correct Answer Incorrect Answer
    B Cost of entire goods produced + Cost of the Opening Inventory Correct Answer Incorrect Answer
    C Cost of entire goods produced + Cost of the Opening Inventory + Cost of Closing Inventory Correct Answer Incorrect Answer
    D Cost of entire goods produced + Cost of the Opening Inventory - Cost of Closing Inventory Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Cost of Goods Sold would consist of costs like raw material cost, change in inventory (i.e. add opening stock and less closing stock) is taken as an expense because this is the cost of the goods which are consumed within an accounting year irrespective of the production which might have happened in the previous year or current year.

    Practice Next
    More Audit Questions

    Relevant for Exams:

    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call