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 is still on hand and has not been sold is called inventory, which is a current asset that appears on the balance sheet. Option A is incorrect because the cost of goods sold is an expense that appears on the income statement and represents the cost of goods that have been sold to customers. Option B is incorrect because inventory is not an income statement item but rather a balance sheet asset. Option D is incorrect because purchases represent the cost of inventory bought during a period, not the cost of inventory on hand.

The Cost of Inventory That Is Still on Hand and Has