The cost of the goods that a company sold during a period is shown in its financial statements as ___________ and the cost of the goods that a company still has on hand at the end of the year is shown in the financial statements as ____________.

Question

Quizplus · Accepted Answer

The cost of the goods sold during a period is known as the cost of goods sold and is shown in the income statement. The cost of the goods remaining unsold at the end of the period is known as inventory and is shown in the balance sheet. Therefore, only option A is correct. Option B is incorrect as there is no such thing as "goods on hand." Option C is also incorrect as it states that inventory is shown as the cost of goods sold, which is not accurate.

The Cost of the Goods That a Company Sold During