Which of the Following Would Be on the Income Statement

question 38

Multiple Choice

Which of the following would be on the income statement of a retailer?

• A) Value of inventory
• B) Cost of goods sold
• C) Accounts payable
• D) Accounts receivable

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Definitions:

Manufacturing Costs

The expenses directly related to the production of goods, including raw material, labor, and overhead costs.

Cost of Goods Manufactured

The total production cost of goods that were completed during an accounting period, including labor, materials, and overhead.

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants and adhesives for machinery.

Payroll Payable

A liability account that records the amounts owed to employees for wages or salaries that have been earned but not yet paid.