If a Merchandising Company Ends a Period with a Larger

Multiple Choice

If a merchandising company ends a period with a larger inventory than it owned at the beginning of the period, then,

A) The cost of goods sold was larger than net purchases.
B) Profit was larger than gross profit.
C) The cost of goods sold was smaller than net purchases.
D) The cost of goods available for sale was smaller than the cost of goods sold.
E) Gross profit was larger than the cost of goods sold.