From Jolier's year-end income statement,you observe that the finished goods inventory has doubled during the year.This would indicate that during the year Jolier
A)sold more goods than were produced.
B)produced more goods than last year.
C)produced more goods than were sold.
D)sold more goods than last year.

Question

Quizplus · Accepted Answer

When finished goods inventory doubles, it means that more goods were produced than sold. As a result, the company has more inventory left over at the end of the year than at the beginning, indicating that there was excess production.

From Jolier's Year-End Income Statement,you Observe That the Finished Goods