Question

Select all that apply Cost of goods sold is characterized by which of the following statements? (Check all that apply.) Multiple select question. Cost of goods sold is an asset reported on the balance sheet. Cost of goods sold is used to figure gross profit. Cost of goods sold is an expense reported on the income statement. Cost of goods sold includes the expenses of buying and preparing an item for sale. Cost of goods sold is also called cost of sales. Cost of goods sold is the money received from selling merchandise.

Answer 1

The correct answer is the Cost of goods sold includes the expenses of buying and preparing an item for sale, it is used to figure gross profit, it is an expense reported on the income statement and it is also called cost of sales.

Cost of goods sold is an accounting term and its is used to describe the amount of direct costs of producing the goods sold by a company.

• Purchases for the period, Beginning inventory and Ending inventory for the period are the notably particulars used to derive this cost in accounting.

• Let understand also that there is significant difference between Cost of goods sold and Cost of goods available for sales.

In conclusion, this accounting term is listed on the income statement, usually below the sales revenue and before the gross profit.

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