Identify the Item Below That Would Be Classified as a Resource

question 25

Multiple Choice

Identify the item below that would be classified as a resource by the REA data model.

• A)An IOU from a customer.
• B)The customer.
• C)A customer sale.
• D)A loan from a vendor.

---

Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Cost of Goods Sold

The direct costs tied to the production of the goods sold by a company, including materials and labor.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, crucial for calculating the cost of goods sold.

Cost of Goods Sold

This accounting term refers to the direct costs attributable to the production of the goods sold by a company, including labor, material, and overhead costs.