Which of the following line items would appear on the income statement of a company that uses the periodic inventory system,but not on that of a company that uses the perpetual inventory system?
A)Net Sales Revenue
B)Cost of Goods Sold
C)Cost of Goods Available for Sale
D)Operating Expenses

Question

Quizplus · Accepted Answer

The cost of goods available for sale (COGAS) is a calculation used in periodic inventory systems to determine the amount of inventory that was available for sale during a given period. Since perpetual inventory systems continuously update inventory levels and cost of goods sold, COGAS does not appear on their income statements. Net sales revenue, cost of goods sold, and operating expenses would appear on both types of income statements.

Which of the Following Line Items Would Appear on the Income