Which One of the Following Accounts Most Likely Would Appear

question 28

Multiple Choice

Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company?

• A)Cost of Goods Sold
• B)Selling Expenses
• C)Administrative Expenses
• D)Income Tax Expense

---

Definitions:

Profit Responsibility

The accountability for achieving financial gain and managing resources effectively within an organization.

Owners

Individuals or entities that legally possess something, holding the rights to control and benefit from it.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.

Profit Responsibility

An organization's focus or obligation to achieve financial gain for its stakeholders or owners.