Question

19) The financial data of company ABC on Yahoo! Finance’s includes cost of revenue. You would like to break the cost of revenue into its two major components: cost of goods sold and depreciation. To do so, we would need to look at _________ for the cost of goods sold amount. a) the statement of cash flow b) either the income statement or the statement of cash flow c) either the balance sheet or the statement of cash flow d) the income statement

Answer 1

Answer:  Option D

Explanation: Income statement refers to the financial statement under which the organisation shows its profit and loss for the year. It depicts the revenue received and the expenses incurred to earn that revenue.  

Cash flow statement shows the inflow and outflow of cash whereas balance sheet shows the position of company at a particular point of time.

Hence from the above we can conclude that the correct option is D.