Which type of account is Cost of Goods Sold?
A)An asset account.
B)A liability account.
C)An expense account.
D)An income account.

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is an expense account that represents the cost of producing or purchasing the goods that are sold by a business. It is subtracted from revenue to calculate gross profit, which is a measure of a company's profitability. Therefore, the correct option is C, which is an expense account.

Which Type of Account Is Cost of Goods Sold