Which of the following two measures gives a better indication of the value added from selling inventory

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Which of the following two measures gives a better indication of the value added from selling inventory
(a) Cash received from customers minus cash paid for inventory, or
(b) Accrual revenue minus cost of goods sold? Why?

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Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

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Question Posted: Mar 17, 2012 06:13 AM

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Which of the following two measures gives a better indication of the value added from selling inventory

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The answer is b Matching cash received from sales with cash spent on in...View the full answer

Financial statements

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