Cost of goods sold
The cost of sending the cars to dealerships and the cost of the labor used to sell the car would be excluded. Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the material...
Where Does Accumulated Depreciation Go on an Income Statement?
Accumulated depreciation is the total amount of depreciation expenses that have been charged to expense the cost of an asset over its lifetime. As your equipment ages and deteriorates, your accounting has to reflect that loss of value. Every month th...
The Effects of Accounts Receivable on a Balance Sheet
Accounts receivable is the amount owed to a seller by a customer. As such, it is an asset, since it is convertible to cash on a future date. Accounts receivable is listed as a current asset in the balance sheet, since it is usually convertible into c...