Which of the following inventories would a discount retailer report as an asset?
A) Raw materials.
B) Work in process.
C) Finished goods.
D) Merchandise inventory.
E) All of the answers are correct.

Question

Quizplus · Accepted Answer

Discount retailers typically report merchandise inventory as an asset because it consists of finished goods ready for sale to customers. They do not typically deal with raw materials or work in process inventory, as those are more relevant to manufacturing entities.

Which of the Following Inventories Would a Discount Retailer Report