1. Financial statements are primarily a result of:

Governmental agency audits

The ongoing work of bookkeepers and managerial accountants

The ongoing work of bankers

Marketing efforts

2. Which of the following statements about cost of goods sold is correct?

For a manufacturer it is a measure of the cost of raw materials and supplies used for producing items for sale

Retailers do not have a cost of goods sold on their income statements

Subtract the cost of goods sold from net sales, the result is net profit

All of the above statements are correct