Which one of the following types of inventory accounts would be used by a wholesaler or retailer?
A)Raw Materials Inventory
B)Work-in-Process Inventory
C)Finished Goods Inventory
D)Merchandise Inventory

Question

Quizplus · Accepted Answer

Merchandise inventory is the type of inventory account used by wholesalers or retailers who buy and sell finished goods. Raw Materials Inventory is used by manufacturers who use raw materials to make finished goods. Work-in-Process Inventory is used by manufacturers who are in the process of manufacturing goods. Finished Goods Inventory is used by manufacturers who have completed the manufacturing process but have not yet sold the goods.

Which One of the Following Types of Inventory Accounts Would