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:

Urinalysis

A test of urine aimed at detecting disorders such as urinary tract infections, kidney disease, and diabetes.

Hyperkalemia

A medical condition characterized by an abnormally high level of potassium in the blood, which can be dangerous to the heart.

Acute Renal Failure

A sudden loss of kidney function, which can result from issues such as reduced blood flow to the kidneys, damage, or blockages.

Cardiac Arrhythmia

An abnormal rate or rhythm of the heartbeat, which can range from being harmless to life-threatening conditions.