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Basic Question 1 of 22

At year-end, all costs of goods available for sale either become cost of goods sold or ending inventory. True or False?

User Contributed Comments 2

User Comment
vatsal92 It means either inventory is COGS or Closing stock.
kieranjh don't the goods have to actually be sold to be COGS? it seems logical that an unsold good is just inventory.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe different inventory valuation methods (cost formulas);

calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using perpetual and periodic inventory systems;

calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods;

CFA® 2024 Level I Curriculum, Volume 3, Module 22.