Which of the Following Line Items Will Appear on the Income

question 233

Multiple Choice

Which of the following line items will appear on the income statement of a merchandiser but not of a service company?

• A) Salaries Expense
• B) Depreciation Expense
• C) Cost of Goods Sold
• D) Supplies Inventory

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Definitions:

Shales

Fine-grained sedimentary rocks that can split into thin, parallel layers, composed mainly of clay minerals.

Siltstones

Fine-grained sedimentary rocks that consist predominantly of silt particles, smaller than sand grains but larger than clay, often formed in quiet water environments.

Lime Muds

Fine-grained sediments composed largely of calcium carbonate, typically formed in marine environments where organisms such as coral or foraminifera are prevalent.

Carbonate Rocks

Sedimentary rocks, such as limestone, that are primarily composed of carbonate minerals, typically formed in marine environments.