The income statement is prepared to know the profitability of the business. The income statement shows the revenue generated, expenses incurred and net income earned by the business during a particular period. To indicate: the title used by the company to indicate the cost of goods sold.

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Chapter 4, Problem 12DQ

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Concept introduction:

The income statement is prepared to know the profitability of the business. The income statement shows the revenue generated, expenses incurred and net income earned by the business during a particular period.

To indicate: the title used by the company to indicate the cost of goods sold.

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