Which line item would be found on a merchandiser's income statement and not on a service firm's?
A)Inventory
B)Service Revenue
C)Depreciation Expense
D)Cost of Goods Sold

Question

Quizplus · Accepted Answer

Merchandisers report an expense called Cost of Goods Sold,which represents the total cost of all goods sold to customers during the period.Service companies do not incur this expense because they do not sell goods.

Which Line Item Would Be Found on a Merchandiser's Income