Which of the following statements correctly completes this sentence? 'For a firm that manufactures floor tiles,when the tiles are completed and ready for sale …'
A) there is no change in the value of the firm's assets.
B) the firm's total assets are decreased.
C) the firm's total cost of the goods sold is increased.
D) the firm's work in process inventory is increased.

Question

Quizplus · Accepted Answer

When the tiles are completed and ready for sale, they are transferred from work in process inventory to finished goods inventory, which does not change the total value of the firm's assets.

Which of the Following Statements Correctly Completes This Sentence? 'For