Where do Inventory and Cost of goods sold appear?
A) On the balance sheet and statement of owner's equity, respectively
B) On the statement of owner's equity and income statement, respectively
C) On the balance sheet and income statement, respectively
D) On the income statement and statement of cash flows, respectively

Question

Quizplus · Accepted Answer

Inventory is an asset that appears on the balance sheet, while Cost of goods sold is an expense that appears on the income statement. Therefore, the correct option is (C) which states that inventory appears on the balance sheet and cost of goods sold appears on the income statement.

Where Do Inventory and Cost of Goods Sold Appear