Inventory is defined as goods held for resale in the ordinary course of business. Which of the following would not be included in inventory for any type of business?

Question

Quizplus · Accepted Answer

Cash at bank is not a physical good held for resale, thus it would not be included in inventory for any type of business. Furniture may be considered inventory if it is held for resale, work in process is also considered inventory as it represents partially completed goods, and land held for resale may be considered inventory for a real estate business.

Inventory Is Defined as Goods Held for Resale in the Ordinary