Two categories of expenses for merchandising companies are
A) cost of goods sold and financing expenses.
B) operating expenses and financing expenses.
C) cost of goods sold and operating expenses.
D) sales and cost of goods sold.

Question

Quizplus · Accepted Answer

Merchandising companies have expenses related to the purchase and sale of goods, which are included in cost of goods sold. They also have expenses related to the operation of their business, such as rent, salaries, and advertising, which are included in operating expenses. Financing expenses are related to borrowing and interest payments and are not directly related to the company's operations. Sales do not represent an expense, but rather a revenue source.

Two Categories of Expenses for Merchandising Companies Are