Which of these equations relating gross profit, stock, purchases and sales is correct?
A
Option A: Gross Profit+ Sales+ Direct expenses+ Purchases+ Closing stock = Opening stock
B
Option B: Gross Profit – Opening Stock + Direct expenses + Purchases +Closing stock = Sales
C
Option C: Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales
D
Option D: Gross Profit+ Sales+ Direct expenses+ Purchases- Closing stock = Opening Stock
Correct answer C. Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales
Explanation
Gross profit equals sales minus cost of goods sold, and cost of goods sold is opening stock plus purchases plus direct expenses minus closing stock, which rearranges to option C.
Answer checked 11 October 2026 · How we write and check questions
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