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:

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.

Withheld FICA Taxes

Taxes deducted from employees' paychecks to fund Social Security and Medicare, which employers also match.

Net Pay

The amount of money an employee takes home after deductions such as taxes and retirement contributions have been subtracted from their gross salary.