Practice question · Select all that apply
Which items appear on the income statement (not the balance sheet)?
Hints
- Flows over a period belong to one statement, balances to the other.
- A right to collect is a position, not a flow.
Show the answer
- A. Depreciation expense
- B. Cost of goods sold
- C. Sales revenue
Why
Revenue, depreciation expense, and COGS are income-statement flows. Accounts receivable is a balance-sheet stock, the asset created when revenue is earned on credit.
Practise The Income Statement
The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.
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