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WAEC Financial Accounting 2018 Question 21

Question 21

Final Accounts of a Sole Trader

Cost of goods sold is calculated as

  1. A.opening stock + purchases-closing stock.
  2. B.opening stock + sales-closing stock.
  3. C.opening stock + purchases + closing stock.
  4. D.opening stock + sales + closing stock.
Show the answer and explanation

Answer: A (opening stock + purchases-closing stock.)

Explanation

Cost of goods sold = opening stock + purchases − closing stock.