________ is an asset that represents the cost of merchandise which was made or bought for sale to customers and that is still on hand.
A) Accounts payable
B) Prepaid expenses
C) Cost of goods sold
D) Merchandise inventory
E) Accounts receivable

Question

Quizplus · Accepted Answer

Merchandise inventory represents the cost of merchandise that a company has purchased or made and is still on hand. It is an asset that is reported on the balance sheet until the merchandise is sold, at which point it becomes cost of goods sold. Options A, B, C, and E are not related to merchandise on hand.

________ Is an Asset That Represents the Cost of Merchandise