If the income statement includes subtotals like "Total expenses," for example, the easiest method is to use the subtotal number where our missing account is and subtract out the other accounts ...

account for their resale inventory under cost of goods sold, also known as cost of sales. This refers to the total price paid for the products sold during the income statement's accounting period.

Learn about our editorial policies The cash flow statement and the income statement are integral ... such as increases or decreases in accounts receivable or accounts payable, and does not include ...