Question

On which financial statements would you look to find the total costs of merchandise that remains and the total that has been sold? Select one: A. Statement of cash flows and balance sheet B. Balance sheet and income statement C. Balance sheet and statement of cash flows D. Statement of stockholders' equity and balance sheet

Answer 1

The answer is B. Balance sheet and income statement

Step-by-step explanation:

Merchandise is an inventory. It is bought and sold.

We can get the total cost of merchandise that were sold and remained in income statement.

In income statement, this can be gotten from cost of sales(cost of goods sold). This tells us the total amount of goods that were sold and the closing/ending inventory tells us the total cost of merchandise remaining.

And in the balance sheet, we can get it under current asset. The balance of inventory tells us how much of merchandise remaining at a period.