Inventory Held by a Business Is A(n)________ and When Sold

question 171

Multiple Choice

Inventory held by a business is a(n) ________ and when sold becomes a(n) ________.

• A)liability; withdrawal
• B)asset; expense
• C)liability; asset
• D)asset; contra asset

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Definitions:

Skill Mismatch

A discrepancy between the skills offered by workers and the skills demanded by employers, which can lead to structural unemployment and inefficiency in the labor market.

Stagnant Economy

An economic condition characterized by slow or no growth in production, employment, and other indicators of economic health.

Simultaneous Inflation

A situation where prices of goods and services rise at the same time across different sectors of an economy.

Prices Rising

An increase in the general level of prices of goods and services in an economy over a period of time.