The Following Statements Regarding Merchandise Inventory Are True Except

question 29

Multiple Choice

The following statements regarding merchandise inventory are true except:

• A)Merchandise inventory is reported on the balance sheet as a current asset.
• B)Merchandise inventory refers to products a company owns and intends to sell.
• C)Merchandise inventory may include the costs of freight in and making them ready for sale.
• D)Merchandise inventory appears on the balance sheet of a service company.
• E)Purchasing merchandise inventory is part of the operating cycle for a business.

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