Cost of Goods Sold is considered what type of account?

a. Equity - expense account

b. Equity - revenue account

c. Liability account

d. Asset account

a. Equity-Expense Account

Explanation:

Cost of Goods sold is Expense account and reported in income statement. The cost of goods sold is total of all expenses incurred to produce goods or services. It includes labor, material and overheads.

The Cost of Goods Sold is arrived at as follows,

Cost of Goods Sold=Opening Inventory + Purchases-Closing Inventory