Inventory consists of items that ________.

Question

Quizplus · Accepted Answer

Inventory refers to items that are purchased for resale to customers as a normal operating activity. This includes goods that are held by a business for the purpose of selling them to customers, such as raw materials, work-in-progress, and finished goods. Option B is incorrect because inventory items are not held for speculative purposes, but rather to meet customer demand. Option C is incorrect because inventory items are tangible assets, such as merchandise or products. Option D is incorrect because inventory items are typically not stored indefinitely, but rather have a limited shelf life or a specific demand cycle.

Inventory Consists of Items That ________