In the income statement of a sole trader, which of the following is considered a

In the income statement of a sole trader, which of the following is considered an expense?

In the income statement of a sole trader, which of the following is considered an expense?

Step 1: Understand what an income statement is. It shows how much money a business makes and spends over a certain period.
Step 2: Identify the main parts of the income statement. These include sales revenue, expenses, and profit.
Step 3: Know that expenses are costs that a business incurs to operate. They reduce the total profit.
Step 4: Learn about Cost of Goods Sold (COGS). This is the direct cost of producing the goods that a business sells.
Step 5: Recognize that COGS is deducted from sales revenue to find out how much gross profit the business makes.
Step 6: Conclude that COGS is indeed an expense in the income statement of a sole trader.

No concepts available.