Raw materials and products held by the firm for sale constitute _____.
A) accounts payable.
B) accounts receivable.
C) cost of goods.
D) inventories.

Question

Quizplus · Accepted Answer

Raw materials and products held by the firm for sale make up inventories. Accounts payable are funds the company owes to suppliers or creditors, accounts receivable are funds owed to the company by customers, and cost of goods refers to the cost of producing the products, not the products themselves.

Raw Materials and Products Held by the Firm for Sale