The amount of the purchases for a period is presented as:
A)an asset on the balance sheet.
B)an expense on the income statement.
C)an expense on the cost of purchases statement.
D)contra revenue on the income statement.

Question

Quizplus · Accepted Answer

The amount of purchases is considered an expense on the income statement because it represents the cost of goods or materials purchased by the company during the period. This expense is matched against revenues generated during the same period to determine the net income or loss for the business.

The Amount of the Purchases for a Period Is Presented