Inventory held by a business is a(n)________ and when sold becomes a(n)________.
A)liability; withdrawal
B)asset; expense
C)liability; asset
D)asset; contra asset

Question

Quizplus · Accepted Answer

Inventory is considered an asset when held by a business because it represents items that can be sold for profit. When inventory is sold, it becomes an expense (cost of goods sold) as it reflects the cost associated with the sale.

Inventory Held by a Business Is A(n)________ and When Sold