When finished products are sold,Cost of Goods Sold is debited and Finished Goods Inventory is credited.

Question

Quizplus · Accepted Answer

This statement is true. When finished products are sold, the cost of those goods is removed from the inventory account (Finished Goods Inventory) and recorded as an expense (Cost of Goods Sold) in the income statement. This is done to accurately reflect the cost of goods sold during a specific period.

When Finished Products Are Sold,Cost of Goods Sold Is Debited