________ would appear on an income statement of both a retailer and a manufacturer.
A) Direct materials used
B) Ending balance in Finished Goods Inventory
C) Selling expenses
D) Ending balance in Merchandise Inventory

Question

Quizplus · Accepted Answer

Selling expenses are incurred by both retailers and manufacturers and would appear on the income statement. Direct materials used and ending balance in finished goods inventory would only appear on the income statement of a manufacturer, while ending balance in merchandise inventory would only appear on the income statement of a retailer.

________ Would Appear on an Income Statement of Both a Retailer