Which One of the Following Accounts Most Likely Would Appear

question 57

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

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Definitions:

Authority

The legal power or right given to an individual or entity to carry out certain actions or to make decisions.

Detrimental

Causing harm or damage, often used to describe actions or conditions that negatively affect someone or something.

Disclose

The act of making known or revealing information that was previously private, secret, or unknown.

Principal

In business contexts, refers to the amount of money loaned or invested, excluding interest or profit. In legal contracts, it can refer to the main parties involved in an agreement.