Which of the Following Would Be on the Income Statement

question 174

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:

Straight-Line Method

A technique in accounting for evenly spreading the cost of an asset over its useful life.

Net Advantage to Leasing

The potential financial benefits gained from leasing an asset, compared to purchasing it outright, considering taxes, maintenance, and other factors.

Pre-Tax Cost

The cost or expense incurred by a business before the deduction of taxes.

CCA Class

It stands for Capital Cost Allowance Class, a categorization in tax systems for different types of depreciable properties to determine the depreciation rate for tax purposes.