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Problem 1: The item on the Income Statement that accounts for the costs of the product that is sold (for example, for a shoe company, the cost of making the shoes) is known as.
Group of answer choices
Option 1: Cost of Goods Sold (COGS)
Option 2: Sales
Option 3: Gross Profit
Option 4: Indirect Expenses
Problem 2: Harold's company makes and sells rain coats. Which computed item on the income statement illustrates how much money Harold's company makes from it's core business (rain coats)?
Option 1: EBT (Taxable Income)
Option 2: Net Income
Option 3: Depreciation
Option 4: Operating Income (EBIT)
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