What is the correct formula for calculation of closing stock? (2024)

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Overview of Companies Financial Statements

What is the c...

A

Opening stock + Direct expenses - Cost of goods sold

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B

Opening stock - Direct expenses - Cost of goods sold

C

Opening stock + Direct expenses + Cost of goods sold

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D

None of the above

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Solution

The correct option is A

Opening stock + Direct expenses - Cost of goods sold

Closing stock = Opening stock + Direct expenses - Cost of goods sold


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What is the correct formula for calculation of closing stock? (2024)
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