Which One of the Following Does Not Appear on the Balance

question 171

Multiple Choice

Which one of the following does not appear on the balance sheet of a manufacturing company?

• A) Finished goods inventory
• B) Work in process inventory
• C) Cost of goods manufactured
• D) Raw materials inventory

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Definitions:

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Aggregate Demand

The sum total of all economic needs for goods and services, appraised at a constant overall price level in a stated period.

Excess Capacity

A situation where a company or economy can produce more goods or services than currently demanded, leading to unused resources or capacity.

Productive Capacity

The maximum output that an economy can produce without causing inflation, determined by the availability of factors of production.