Which one of the following best explains the distinction between inventory and an operating asset?
A) ownership
B) cost
C) intent
D) purchase price

Question

Quizplus · Accepted Answer

Intent differentiates inventory from operating assets. Inventory is held for the purpose of being sold, while operating assets are held to support ongoing business operations. Ownership, cost, and purchase price may vary for both types of assets and do not necessarily distinguish one from the other.

Which One of the Following Best Explains the Distinction Between