If Eric wants to know the cost of obtaining materials to make products that were sold during the year, he would look at the
A) income statement.
B) statement of cash flows.
C) operating expenses statement.
D) balance sheet.
E) none of these.

Question

Quizplus · Accepted Answer

The income statement shows the revenues generated and expenses incurred during a specific period, including the cost of goods sold (materials used to make products). Therefore, Eric can find the cost of obtaining materials to make products by looking at the income statement.

If Eric Wants to Know the Cost of Obtaining Materials