Which of the following costs is most likely to be the largest expense reported on the income statement of a merchandiser such as Wal-Mart Stores?
A)Utilities expense.
B)Cost of goods sold.
C)Advertising expense.
D)Income tax expense.

Question

Quizplus · Accepted Answer

Cost of goods sold refers to the cost of the merchandise that a company sells, which is typically the largest expense for a merchandiser such as Wal-Mart. Utilities expense, advertising expense, and income tax expense are all important expenses for a business, but they are usually much smaller in comparison to the cost of goods sold.

Which of the Following Costs Is Most Likely to Be