The presentation of merchandise inventory on the balance sheet of a merchandising company most nearly resembles the presentation of __________ inventory on the balance sheet of a manufacturing company.
A)materials
B)finished goods
C)manufacturing supplies
D)work in process

Question

Quizplus · Accepted Answer

The presentation of merchandise inventory on the balance sheet of a merchandising company is most similar to the presentation of finished goods inventory on the balance sheet of a manufacturing company. Both represent the inventory that is ready for sale to customers. Materials, manufacturing supplies, and work in process inventory all represent inventory that is still in the production process and not yet ready for sale.

The Presentation of Merchandise Inventory on the Balance Sheet of a Merchandising