Which of the Following Accounts Would NOT Be Found Under

question 43

Multiple Choice

Which of the following accounts would NOT be found under the heading of "Cost of Goods Sold" in a chart of accounts?

• A) Purchases
• B) Purchases Returns and Allowances
• C) Freight-In
• D) Supplies

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Definitions:

Equipment

Equipment consists of the tools, machinery, and other durable assets used in the production of goods or services.

Intangible Benefits

Non-quantifiable advantages provided by goods or services, such as brand reputation or employee satisfaction.

Discount Rate

The rate used within discounted cash flow assessments to ascertain the present-day value of anticipated cash flows.

Net Present Value

A calculation that determines the value of a series of future cash flows in today's dollars, taking into account the time value of money.