Which of the following accounts would most likely appear on the income statement of a merchandise company, but not on the income statement of a service company?

Question

Quizplus · Accepted Answer

Cost of goods sold is an expense that is specific to merchandise companies as they sell physical products and must account for their cost. Service companies do not have this expense as they provide intangible services rather than physical products.

Which of the Following Accounts Would Most Likely Appear on the Income