Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following items are typically found on the income statement of a merchandiser?

Cost of Goods Sold

Sales Revenue

Inventory (ending balance)

Accounts Payable

Previous problemNext problem

Verified step by step guidance

Understand the purpose of the income statement: The income statement is a financial report that summarizes a company's revenues, expenses, and profits over a specific period. It is used to assess the company's financial performance.

Identify the key components of a merchandiser's income statement: For a merchandiser, the income statement typically includes items such as Sales Revenue (the total revenue generated from selling goods) and Cost of Goods Sold (COGS), which represents the direct costs of the goods sold during the period.

Evaluate the provided options: Review each item in the list to determine if it belongs on the income statement. Sales Revenue and Cost of Goods Sold are directly related to the income statement, as they are part of the calculation of gross profit.

Clarify why Inventory (ending balance) and Accounts Payable are not included: Inventory (ending balance) is reported on the balance sheet as a current asset, and Accounts Payable is a liability also reported on the balance sheet. These items are not part of the income statement.

Conclude with the correct items: The items typically found on the income statement of a merchandiser are Sales Revenue and Cost of Goods Sold, as they are directly related to the calculation of the company's profitability.