For a merchandising firm,the inventory sold is shown on the income statement as:

Question

Quizplus · Accepted Answer

Cost of merchandise sold represents the cost of inventory that has been sold during a specific period. This cost includes the original purchase cost of the merchandise, as well as any additional expenses associated with purchasing and preparing the merchandise for sale, such as freight-in, handling costs, and import fees. Therefore, cost of merchandise sold is the correct choice for a merchandising firm to show inventory sold on the income statement.

For a Merchandising Firm,the Inventory Sold Is Shown on the Income