Which of the following equations is correct?
AGross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales
BGross Profit+ Sales+ Direct expenses+ Purchases+ Closing stock = Opening stock
Correct answer
A. Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales
Explanation
Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.