How are goods purchased for sale at a later date recorded in the financial statements?
A) as inventory
B) as prepaid expenses
C) as cost of goods sold
D) as operating expenses

Question

Quizplus · Accepted Answer

Goods purchased for sale at a later date are considered inventory and are recorded as such in the financial statements. Prepaid expenses are typically for expenses that have already been paid for but have not been used yet. Cost of goods sold and operating expenses are expenses related to the ongoing operation of the business and do not apply to goods purchased for future sale.

How Are Goods Purchased for Sale at a Later Date