Inventory on Hand at the End of the Year Is

question 60

True/False

Inventory on hand at the end of the year is Section 1231 property.

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Definitions:

Inventory

The merchandise and supplies a company maintains with the end purpose of selling or manufacturing.

Periodic Inventory System

A method of inventory management where inventory levels and cost of goods sold are updated in the accounting records on a periodic basis, such as monthly or annually.

FIFO Cost Method

An inventory valuation method that assumes goods are sold in the order they were acquired, using the costs of the earliest items first.

Ending Inventory

This is the total value of all inventory still available for sale at the end of an accounting period.