Merchandise inventory includes:
A)All goods a company owns and holds for sale.
B)All goods in transit.
C)All goods on consignment.
D)Only damaged goods.
E)Only items that are on the shelf.

Question

Quizplus · Accepted Answer

Merchandise inventory includes all goods a company owns and holds for sale. This includes goods that are already in the company's possession as well as those that are owned but not yet received or shipped. Goods on consignment or in transit are not considered merchandise inventory until they are under the company's control. Damaged goods may or may not be included in merchandise inventory, depending on the company's policy. Items that are on the shelf are typically included in merchandise inventory, but this is not the only category of goods that is included.

Merchandise Inventory Includes