Match Each of the Following Characteristics with the Financial Statement

question 157

Multiple Choice

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once.
-The connecting link between the income statement and balance sheet

• A)Income statement
• B)Balance sheet
• C)Statement of owner's equity
• D)Statement of cash flows

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Definitions:

Selling Expense

Costs incurred directly and indirectly in making sales; these can include advertising, sales staff salaries, and commissions.

Periodic Inventory Method

An accounting method that updates inventory and cost of goods sold figures at the end of an accounting period, not at each sale.

Cost Of Merchandise Sold

The total cost incurred to purchase or produce the goods that have been sold to customers during a specific period.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the amount before deducting operating expenses.