Regarding the Cost of Goods Sold account,which of the following statements is incorrect?
A) In a perpetual inventory system, the Cost of Goods Sold account keeps a current balance throughout the period.
B) Cost of Goods sold is a contra revenue account.
C) Cost of Goods Sold is based on the company's cost, not the retail price.
D) Cost of Goods Sold represents the cost of inventory that has been sold to customers.

Question

Quizplus · Accepted Answer

B) Cost of Goods sold is an expense account.

Regarding the Cost of Goods Sold Account,which of the Following