Which of the following accounts would most likely appear on the income statement of a merchandise company,but not on the income statement of a service company?

Question

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A merchandise company sells physical products and therefore incurs costs to acquire, produce, and transport those products to their customers. These costs are included in the Cost of Goods Sold (COGS), which appears on the income statement of a merchandise company but not on the income statement of a service company. Service companies provide intangible services, so they do not have COGS on their income statements.

B) Selling Expenses and C) Administrative Expenses may appear on both merchandise and service companies' income statements. D) Income Tax Expense is a required account for both kinds of companies but does not differ between them.

Which of the Following Accounts Would Most Likely Appear on the Income