Question

In: Finance

Which of the following item cannot be found on a fims income statement?

Which of the following item cannot be found on a fims income statement?

  • inventories

  • tax

  • sales

  • cogs

Solutions

Expert Solution

Sales, cost of goods sold are used to determine the gross profit, and after deducting some other income statement items, we get earnings before tax from which we need to deduct the tax amount to get the net income. On the other hand, inventory is a balance sheet item and found under assets.

Answer: Hence, inventory cannot be found on a firm's income statement.

jeff jeffy answered 2 years ago
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