Merchandise sold and delivered by the end of the year is reported on the income statement as _____.?

Merchandise sold and delivered by the end of the year is reported on the income statement as _____.

a. cost of goods sold

b. inventory

c. capital stock

d. operating income

1 Answer

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  • John
    Lv 6
    1 month ago

    First, read the question (rather than just copying it to YA).  Next, try to think. Ask yourself what happened in this transaction. That should give you the answer. If it doesn't, read the question again and look for clues. The question says "on the income statement." Only 2 of the 4 answers are income statement accounts.  The others are balance sheet accounts.  That eliminates half the answers. Again, ask yourself what happened in this transaction.     

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