Which Account Is Associated with the Sale of Inventory

question 86

Multiple Choice

Which account is associated with the sale of inventory?

• A)Cost of goods sold.
• B)Depreciation.
• C)Inventory expense.
• D)Equipment.

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Definitions:

Assets

Resources owned or controlled by a company that are expected to provide economic benefits or value in the future.

Expenses

Costs incurred by a business in the process of earning revenue, such as salaries, rent, and utilities.

Assets

Resources owned or controlled by a company with expected future economic benefit.

Revenues

The total amount of money generated by a company from its normal business operations, before any costs or expenses are deducted.