Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) A service company does not have Cost of Goods Sold account because it does not sell goods.
B) A service company does have a Cost of Goods Sold account because it sells a service.
C) A merchandising company does not have a Cost of Goods Sold account because it does not sell goods.
D) A merchandising company does not have a Cost of Goods Sold account because it only sells a service.