With Regards to the Income Statement for a Retailer, Which

Multiple Choice

With regards to the income statement for a retailer, which of the following statements is correct?

A) The cost of sales section is the same no matter whether the periodic or perpetual inventory system is used.
B) Under the periodic system freight inwards is added to the cost of purchases.
C) Interest revenue is added to sales revenue to calculate gross profit.
D) Expenses are classified into the groupings selling expenses, distribution expenses, and administrative and finance expenses.