Which of the Following Accounts Will Not Be Found on the Cost

question 9

Multiple Choice

Which of the following accounts will not be found on the Cost of Merchandise Sold section on the Income Statement?

• A) Purchases
• B) Freight In
• C) Sales Returns and Allowances
• D) Merchandise Inventory

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Definitions:

Psia Gauge

A pressure measurement expressed in pounds per square inch absolute, including the atmospheric pressure.

Atmospheric Pressure

Ambient pressure at sea level equivalent to 14.7 psia, 101.3 kPa, 1 atm, or 1.01 bar.

Psia

Pounds per square inch absolute. Measure of pressure values used in North America that factors in atmospheric pressure of 14.7 psi.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, crucial for weather patterns and breathing.