Is Cost of Goods Sold A Temporary Account Or A Permanent Account
Cost of Goods Sold or Cost of Sales is a Temporary Accou nt as it is closed to Income Summary Account f or t he period a nd it is not a Permanent Account . Actually, cost of goods sold is a direct expense and as an expense is a temporary account w hich expired withi n one year. A temporary account can not has b ala nce like a permanent account. Is Cost Of Goods Sold An Expense Or A Contra Revenue Account? Cost of sales is not a Contra Revenue Account . It is a direct expense account and it is deducted from Sales in Income Statement . Cost Of sales Is An Example Of What Type Of Expenditure It is an example of Revenue Expenditure as it is incurred to meet day to day expenses.