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:

Managerial Accounting

The field of accounting that focuses on providing information to managers for use in planning, controlling, and making decisions.

Service Entities

Organizations that primarily provide intangible products or services to customers or other businesses.

Manufacturing Entities

Businesses involved in the production of physical goods from raw materials through a systematic process of transformation.

Function Of Controlling

The managerial process of monitoring organizational performance against goals and objectives and making adjustments as needed.