Identify the correct equation from the following options:

Show Answers

Opening stock equals gross profit plus sales, direct expenses, purchases, and closing stock combined.Opening stock equals gross profit plus sales, direct expenses, purchases, minus closing stock.Sales amount equals gross profit added to opening stock, direct expenses, and purchases, less closing stock.Sales amount equals gross profit minus opening stock plus direct expenses, purchases, and closing stock.None of the above.

Explanation

Option C accurately represents the relationship: Sales = Gross Profit + Opening Stock + Direct Expenses + Purchases - Closing Stock. The other options incorrectly arrange the terms and do not reflect the proper accounting formula.