- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 22. Inventories
- Subject 2. Inventory Valuation Methods
CFA Practice Question
Which one of the following is true?
B. Ending Inventory = Cost of Goods Sold + Purchases - Beginning Inventory
C. Ending Inventory = Beginning Inventory - Purchases + Cost of Goods Sold
A. Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory
B. Ending Inventory = Cost of Goods Sold + Purchases - Beginning Inventory
C. Ending Inventory = Beginning Inventory - Purchases + Cost of Goods Sold
Correct Answer: A
Ending Inventory = Beginning Inventory + Purchases - COGS
Just remember this:
Ending Inventory = Beginning Inventory + Purchases - COGS
User Contributed Comments 4
| User | Comment |
|---|---|
| quincy | Begining Inventory + Purchase = COGS + Ending Inventory |
| 2014 | Or BPC (British Petroleum Corporation) B+P-C "BPC" |
| 2014 | = EI = "BPC" |
| ashish100 | Or use logic. |