On which financial statement would you look to find the total costs of merchandise that remains and the total that has flowed through a company's accounting system?
A) Balance sheet and statement of cash flows
B) Income statement and balance sheet
C) Statement of cash flows and balance sheet
D) Statement of stockholders' equity and balance sheet

Question

Quizplus · Accepted Answer

When inventories are used up in production or are sold, their costs are transferred from the balance sheet (inventory account) to the income statement as cost of goods sold.

On Which Financial Statement Would You Look to Find the Total