Which of the Following Is Not a Basic Assumption of the Gross

Multiple Choice

Which of the following is not a basic assumption of the gross profit method?

A) The beginning inventory plus the purchases equal total goods to be accounted for.
B) Goods not sold must be on hand.
C) If the sales, reduced to the cost basis, are deducted from the sum of the opening inventory plus purchases, the result is the amount of inventory on hand.
D) The total amount of purchases and the total amount of sales remain relatively unchanged from the comparable previous period.