In a Manufacturing Business Inventory That Is Ready for Sale

question 108

Multiple Choice

In a manufacturing business inventory that is ready for sale is called

• A) raw materials inventory.
• B) work in process inventory.
• C) finished goods inventory.
• D) store supplies inventory.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Working Capital Ratio

a financial metric that measures a company's ability to pay off its current liabilities with its current assets, an indicator of financial health.

Total Current Assets

The total value of all assets that are expected to be converted into cash within one year, including cash, inventory, and receivables.

Total Current Liabilities

The sum of all debts and financial obligations a company is expected to pay within one fiscal year.