Merchandise Inventory Is What Type of Account

question 100

Multiple Choice

Merchandise Inventory is what type of account?

• A) Asset
• B) Liability
• C) Expense
• D) Cost

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Definitions:

Cost Of Goods Sold

Expenses directly tied to the production process of goods a company markets.

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period, carried over from the preceding period.

Cost Of Goods Sold

The total cost directly involved in producing goods or services, including materials and labor.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.