Which One of the Following Items Is Most Likely a Derived-Demand

question 67

Multiple Choice

Which one of the following items is most likely a derived-demand inventory item?

• A) Wrenches held in inventory by a hardware store
• B) Tires held in inventory by a tractor manufacturer
• C) Shoes on display in a retail store
• D) Toys just received by a toy store
• E) Wheat harvested by a farmer

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Definitions:

Work Sheet

An internal document used by accountants to prepare financial statements, gather and adjust entries.

Balance Sheet Columns

Sections in a balance sheet presenting assets, liabilities, and shareholders' equity at a specific point in time.

Work Sheet

An informal document used by accountants to organize and consolidate financial information for the preparation of financial statements.

Balance Sheet

A balance sheet that illustrates a corporation's resources, outstanding debts, and the net worth held by shareholders at a pinpointed moment.