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

Question

Quizplus · Accepted Answer

Service Revenue would be found on a service firm's income statement, as they provide services instead of selling merchandise. Inventory and Cost of Goods Sold would typically only be found on a merchandiser's income statement. Depreciation Expense may appear on both types of income statements if the company has assets that are subject to depreciation.

Which Line Item Would Be Found on a Service Firm's