The expense in the statement of comprehensive income which represents the purchase price of the goods that have been sold is called:
A) merchandise.
B) cost of sales.
C) sales.
D) payments for stock.

Question

Quizplus · Accepted Answer

The expense in the statement of comprehensive income which represents the purchase price of the goods that have been sold is called cost of sales. This is also commonly known as cost of goods sold (COGS). This expense is deducted from sales revenue to calculate the gross profit margin of a business.

The Expense in the Statement of Comprehensive Income Which Represents