Each income statement account is linked to at least one balance sheet account.Which of the following would be the related income statement account for the balance sheet account of inventories?
A)Sales.
B)Cost of sales.
C)Depreciation expense.
D)None of the above.

Question

Quizplus · Accepted Answer

The cost of sales (or cost of goods sold) is directly related to inventories, as it represents the cost of inventory that has been sold during the period.

Each Income Statement Account Is Linked to at Least One