Items should be reported as part of the company's "inventory" at year end, if they are
A) Sold during the period.
B) Determined to be part of cost of goods sold.
C) Purchased from a creditor, available for sale, and paid for the following year.
D) Held in anticipation of an increase in market value.

Question

Quizplus · Accepted Answer

Inventory includes items that are purchased and available for sale, regardless of whether payment has been made. Items sold or part of cost of goods sold are not included in year-end inventory. Holding items for an increase in market value does not classify them as inventory.

Items Should Be Reported as Part of the Company's "Inventory