Which of the Following Accounts Will Not Be Found in the Cost

question 195

Multiple Choice

Which of the following accounts will not be found in the cost of merchandise sold section of the income statement for a company using the periodic inventory method?

• A) Purchases
• B) Freight In
• C) Selling Expense
• D) Merchandise Inventory

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Definitions:

Neutral Third Party

An independent entity or individual who provides unbiased assistance in conflict resolution or decision-making processes.

Buyer And Seller

Parties involved in the transaction of goods or services, where the buyer purchases from the seller.

Installment Payments

A system of paying for goods or services over a period of time in regular, scheduled payments.

New Business

A venture that has been recently established, entering its initial operational stage in the marketplace.