Manufacturers Usually Classify Inventory into All the Following General Categories

question 183

Multiple Choice

Manufacturers usually classify inventory into all the following general categories except

• A) work in process
• B) finished goods
• C) merchandise inventory
• D) raw materials

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Definitions:

Credits

Entries in accounting that increase liabilities, revenue, or equity accounts, or decrease asset or expense accounts.

Withdrawals

Money or assets taken out of a business by its owner(s) for personal use.

Owner's Equity

The ownership stake of shareholders or owners in a company's assets once all debts have been subtracted.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.