Which of the Following Is True Regarding Material Considered Goods

question 2

Multiple Choice

Which of the following is true regarding material considered goods under the UCC?

• A) Minerals taken from real estate and sold by the owner, soil taken from real estate and sold by the owner, and the right to remove soil from real estate are all considered goods under the UCC.
• B) Soil taken from real estate and sold by the owner is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC.
• C) The right to remove soil from real estate is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC.
• D) Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC, but the right to remove soil from real estate is not considered a good under the UCC.
• E) Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC, but soil taken from real estate and sold by the owner is not considered a good under the UCC.

---

Definitions:

Ending Inventory

The total value of all merchandise or products that remain unsold at the end of an accounting period.

Overstating

The act of reporting financial statements or values higher than they actually are, leading to a misrepresentation of a company's financial condition.

Moving-average Cost

An inventory costing method where the cost of goods sold and ending inventory value are determined based on the average cost of all similar items in inventory.

Perpetual Inventory System

An inventory system that records adjustments to inventory levels continuously as transactions occur.