Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?

A) Purchases
B) Freight In
C) Selling Expense
D) Inventory

Question

godfred nyame · Accepted Answer

Final Answer : C, Explanation :  Cost of Goods Sold section only includes accounts that directly relate to the cost of producing the sold goods. Purchases and Freight In are both costs associated with inventory acquisition and would be included in the Cost of Goods Sold section. Inventory itself is not an expense and therefore would not be included in the Cost of Goods Sold section. Selling Expense is not related to the cost of producing the sold goods and would not be included in the Cost of Goods Sold section.

Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?

A) Purchases
B) Freight In
C) Selling Expense
D) Inventory

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Learning Objectives

Learning Objectives

Related questions

Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?A) PurchasesB) Freight InC) Selling ExpenseD) Inventory

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?

A) Purchases
B) Freight In
C) Selling Expense
D) Inventory