The only type of inventory that Macy's, a major U.S. department store chain would report on its balance sheet is:
A) merchandise inventory
B) finished goods inventory
C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts
D) no inventory accounts as Macy's is a service-sector company

Question

Quizplus · Accepted Answer

Macy's is a retail company that sells merchandise, so the only type of inventory that they would report on its balance sheet is merchandise inventory. Choice B and C are not applicable as they are related to manufacturing companies, while choice D is incorrect since Macy's is not a service-sector company, but a retail company that sells merchandise.

The Only Type of Inventory That Macy's, a Major U