Question

Which line item would be found on a merchandiser's income statement and not on a service firm's?

a. Supplies
b. Cost of Goods Sold
c. Inventory
d. Revenue

Answer 1

The line item that would be found on a merchandiser's income statement and not on a service firm's is Cost of Goods Sold.

Step-by-step explanation:

The line item that would be found on a merchandiser's income statement and not on a service firm's is b. Cost of Goods Sold. Cost of Goods Sold represents the direct cost of producing the goods sold by a merchandiser. It includes the cost of materials, labor, and other expenses directly associated with the production of goods.