The amount of inventory expensed during the year is reported on the income statement as:
A) sales revenue.
B) cost of goods sold.
C) operating expenses.
D) administrative expenses.

Question

Quizplus · Accepted Answer

The cost of goods sold is the expense on the income statement that represents the cost of the inventory sold during the year. It is calculated as beginning inventory plus purchases during the year minus ending inventory. Therefore, option B is the correct choice.

The Amount of Inventory Expensed During the Year Is Reported