Question

Which account(s) are found on an income statement?

A. Accumulated depreciation
B. Checking
C. Cost of goods sold
D. Owner's equity
E. Loan payable

Answer 1

The account from the options provided that is found on an income statement is Cost of Goods Sold (COGS). Accounts like accumulated depreciation, checking, owner's equity, and loan payable are found on the balance sheet.

Step-by-step explanation:

Income Statement Accounts

The account found on an income statement is C. Cost of goods sold. An income statement reports a company's financial performance over a specific accounting period. It typically includes revenues, cost of goods sold (COGS), gross profit, and operating expenses. Accumulated depreciation is found on the balance sheet, not the income statement. Similarly, a checking account would be listed on the balance sheet as a cash asset. Owner's equity and loan payable are also found on the balance sheet under equity and liabilities, respectively. This includes all the direct costs involved in producing the goods that a company sells.The account from the options provided that is found on an income statement is Cost of Goods Sold (COGS). Accounts like accumulated depreciation, checking, owner's equity, and loan payable are found on the balance sheet.