Yelena just completed her income statement. She included her company's sales revenue, operating expenses, and net income. Which principal part of an income statement did Yelena forget to include?

Question

Quizplus · Accepted Answer

Cost of goods sold (COGS) is a critical component of the income statement that Yelena forgot to include. It represents the direct costs attributable to the production of the goods sold by a company. This figure is essential for calculating gross profit, which is sales revenue minus the cost of goods sold.

Yelena Just Completed Her Income Statement