Question

Cost of Goods Sold is:O An asset account.O A revenue account.O An expense account.O A permanent equity account.

Answer 1

An expense account

Step-by-step explanation:

The cost of the goods sold is an expense account shown in the income statement.

The cost of the goods sold would be equal to

= Cost of the goods sold= Inventory opening + Purchase ending inventory

It includes all the direct costs incurred in producing the goods sold by the company. Direct costs include direct material, direct labor costs. It does not include indirect costs, i.e overhead cost