Which financial statement shows the cost of obtaining materials to make products that were sold during the year?
A) Income statement
B) Balance sheet
C) Statement of cash flows
D) Operating expenses statement
E) Statement of retained earnings

Question

Quizplus · Accepted Answer

The income statement shows the revenues, expenses, and net income of a company. The cost of goods sold (COGS) is a major expense category on the income statement and represents the cost of obtaining the materials to make products that were sold during the year. Therefore, the income statement is the financial statement that shows the cost of obtaining materials to make products that were sold during the year.

Which Financial Statement Shows the Cost of Obtaining Materials to Make