As inventory and property plant and equipment on the balance sheet are consumed, they are reflected as an expense on the income statement.
Therefore, the correct answer is the 'B' Option.
When assets are consumed, the consumption appears on the income statement as expenses.
Inventory will become an expense in Cost of Goods Sold, which as a result will be deducted from revenue to determine gross profit.
Consumption of Property, Plant, and Equipment will result in depreciation on the income statement.
Since depreciation is a non-cash item that will be removed from the net income along with other expenses.
Hence, the correct option is 'B'.
Learn more about inventory:
https://brainly.com/question/15967271
#SPJ4
