Question 1 1. Two categories of expenses for merchandising companies are Select one answer: Oa. cost of goods sold and financing expenses. Ob. operating expenses and financing expenses. O c, cost of goods sold and operating expenses. Od. sales and cost of goods sold.
AnswerAnswer : C) Cost of Goods Sold and Operating Expenses Two Catagories of Expenses in the Merchandise company for the Preparation of Income Statement 1) Cost of Goods Sold : ( Includes the Product cost of Units Sold )
2) Operating Expenses : ( Includes the expenses of Selling and Administrative Expenses and other Expenses)