Enrolled Agent Exam [Part 2] 36, Gross Receipts and Cost of Goods Sold

About this episode

In this episode, Ran Chen discusses Gross Receipts and the Cost of Goods Sold as part of the Enrolled Agent Exam preparation.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Gross Receipts represents the total sales revenue a business receives from all sources before any expenses are subtracted. - The Cost of Goods Sold (COGS) formula is: Beginning Inventory + Purchases & Other Direct Costs - Ending Inventory. - Only direct costs, such as raw materials and direct labor, are included in COGS; indirect expenses like marketing or administrative salaries are deducted separately. - Businesses must account for inventory and calculate COGS if the production, purchase, or sale of merchandise is a significant income-producing factor. - On Schedule C for a sole proprietorship, COGS is calculated in Part III and then used in Part I to determine the business's gross profit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel…

People in this episode

Host: Ran Chen

Topics covered

• Enrolled Agent Exam
• Gross Receipts
• Cost of Goods Sold
• Inventory
• Business Profit

Keywords

• Gross Receipts
• Cost of Goods Sold
• COGS
• Inventory
• Sole Proprietorship

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel

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