Which of the following would appear on the income statement of a company that uses the periodic inventory method,but would NOT appear on the income statement of a company that uses the perpetual inventory method?
A) Net sales
B) Cost of goods sold
C) Cost of goods available for sale
D) Insurance expenses

Question

Quizplus · Accepted Answer

Cost of goods available for sale is a calculation specific to the periodic inventory method, used to determine the cost of goods sold during the period. It does not appear on the income statement of a company using the perpetual inventory method, where purchases are directly recorded into the cost of goods sold.

Which of the Following Would Appear on the Income Statement