The cost of inventory that is still on hand and has NOT been sold to customers is called:

Question

Quizplus · Accepted Answer

The cost of inventory that has not been sold yet is still considered as an asset, which is recorded on the balance sheet. Therefore, option C - "inventory, a current asset that appears on the balance sheet" is the correct choice. Option A is incorrect as cost of goods sold represents the cost of inventory that has been sold to customers, and it appears on the income statement. Option B is also incorrect because although inventory is a current asset, it does not appear on the income statement.

The Cost of Inventory That Is Still on Hand and Has