BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income Statement
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Balance Sheet
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Cash Flow Statement
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Statement of Owner’s Equity
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Detailed explanation-1: -An income statement is a financial statement that shows you the company’s income and expenditures.
Detailed explanation-2: -One relatively simple way to determine the cost of goods sold is to compare inventory at the start and end of a given period using the formula: COGS = Beginning Inventory + Additional Inventory-Ending Inventory.
Detailed explanation-3: -Cost of goods sold (COGS) is calculated by taking the value of inventory at the beginning of the period being studied, adding the cost of any new inventory purchased over the covered period, and subtracting the value of inventory held at the end of the period.
Detailed explanation-4: -Cost of goods sold (COGS) definition The cost of goods sold (GOGS) is the sum of all direct cost associated with making a product. It appears on an income statement and typically includes money spent on raw materials and labour. It does not include coss associated with marketing, sales or distribution.
Detailed explanation-5: -Cost of goods sold (COGS) is calculated by using the COGS formula, which is represented as: (Beginning Inventory + Purchases) – Ending Inventory = COGS.