Each income statement account is linked to at least one balance sheet account. Which of the following would be the related income statement account for the balance sheet account of inventories?
A) cost of sales.
B) depreciation expense.
C) sales.
D) none of the above.

Question

Quizplus · Accepted Answer

The cost of sales (or cost of goods sold) is directly related to the inventory on the balance sheet, as it represents the cost of the inventory that was sold during the period.

Each Income Statement Account Is Linked to at Least One