Which of the following items would NOT appear on an income statement of a service organization?
A)selling expenses
B)cost of goods sold
C)administrative expenses
D)gross margin

Question

Quizplus · Accepted Answer

Cost of goods sold is a term used in the income statement of merchandising and manufacturing companies, as it refers to the cost of producing or purchasing goods that are sold. Service organizations do not have inventory or cost of goods sold, as they provide intangible services rather than tangible products. Selling expenses, administrative expenses, and gross margin are all relevant terms for service organizations' income statements.

Which of the Following Items Would NOT Appear on an Income