Why Are Inventories Included in the Computation of Net Income

question 30

Multiple Choice

Why are inventories included in the computation of net income?

• A) To determine cost of goods sold.
• B) To determine sales revenue.
• C) To determine merchandise returns.
• D) Inventories are not included in the computation of net income.

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Definitions:

Clostridium Difficile

A bacterium that can cause symptoms ranging from diarrhea to life-threatening inflammation of the colon, often associated with antibiotic use.

Tuberculosis

An infectious disease caused by the bacterium Mycobacterium tuberculosis, primarily affecting the lungs but can spread to other organs.

MRSA Infection

An infection caused by methicillin-resistant Staphylococcus aureus, a type of bacteria that is resistant to many antibiotics, making it difficult to treat.

Bloodborne Pathogen

Microorganisms in human blood that can cause diseases, including viruses such as HIV and hepatitis.