An owner of an antique shop sold a dining room set from the 1800s.He is not quite sure if he made a profit.What accounting information does he need to verify to determine if a profit was made?

Question

Quizplus · Accepted Answer

To determine if a profit was made, the owner needs to calculate the cost of goods sold (COGS). COGS is the amount of money spent on producing or acquiring the products being sold. By subtracting the COGS from the revenue generated by the sale, the owner can determine if a profit was made. Therefore, the owner needs to verify the cost of goods sold.

An Owner of an Antique Shop Sold a Dining Room