Accounting for IGCSE & O level - Final Statements (Section 6 - No. 13)
What is the purpose of the closing inventory in calculating the cost of goods sold?
To measure the cost of goods sold in the beginning of the accounting period.
To estimate the value of goods available for sale during the year.
To determine the value of unsold goods at the end of the accounting period.
To calculate the total purchases made during the year.
Forklaring
Closing inventory represents the value of goods remaining unsold at the end of the accounting period.