Which of the following would not be included in the Inventory account on a merchandising company's balance sheet?

Question

Quizplus · Accepted Answer

Sales taxes received are not part of the cost of inventory, so they would not be included in the Inventory account on the balance sheet. Instead, they would be recorded separately in a liability account until they are remitted to the appropriate taxing authority. The other options listed (customs duties, shipping costs, and insurance on merchandise while in transit) are all costs associated with acquiring inventory and would be included in the Inventory account.

Which of the Following Would Not Be Included in the Inventory