Which of the Following Statements About Inventory Classifications Is Not

question 137

Multiple Choice

Which of the following statements about inventory classifications is not correct?

• A)Inventory may include materials used in producing goods for sale.
• B)Manufacturers hold three types of inventory that are referred to as raw materials inventory,work in process inventory,and finished goods inventory.
• C)Inventory is classified as a long-term asset on the balance sheet.
• D)Merchandisers buy inventory in finished form ready for resale.

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Definitions:

One-time Deposit

A single, initial deposit of funds into an account or investment, rather than multiple or recurring deposits.

Simple Interest

Interest calculated only on the initial amount of money (principal), not on the accumulated interest.

Annually Compounded

Interest on an investment that is calculated once per year, adding the interest earned to the principal amount for future interest calculations.

40-year Period

A time frame lasting 40 years, often referred to in the context of investments or financial planning.