Question

Costs are transferred from the balance sheet to the income statement as cost of goods sold when ________. Group of answer choices

Answer 1

Answer: a. finished goods are sold

Step-by-step explanation:

Finished goods stay in the balance sheet as the Inventory that the company has and it will be reflected at cost.

When the Finished goods are sold however, this cost to make the finished goods will be transferred to the Income statement as Cost of goods sold so that the company will be able to determine its Gross Profit.