CFE – Financial Transactions and Fraud Schemes — Question 1

All of the following items appear on the balance sheet EXCEPT:

Answer options

• A. Liabilities
• B. Cost of goods sold
• C. Assets
• D. Retained earnings

Correct answer: B

Explanation

The correct answer is B, Cost of goods sold, as it appears on the income statement rather than the balance sheet. Liabilities, Assets, and Retained earnings are all components that are included in the balance sheet, representing the company's financial position.