Match the Inventory-Related Accounts to Costs That May Be Included

question 140

Multiple Choice

Match the inventory-related accounts to costs that may be included in inventories for retailers and manufacturers.
-Costs to purchase goods ready to sell.

• A)Merchandise Inventory
• B)Raw Materials
• C)Work in Process
• D)Finished Goods
• E)Cost of Goods Sold

---

Definitions:

Adjusting Entry

An accounting entry made at the end of a period to allocate income and expenditure to the appropriate accounting period.

Unearned Subscription Revenue

Unearned Subscription Revenue is income received by a company for goods or services yet to be provided, recorded as a liability on the balance sheet.

Subscription Revenue

Income generated from customers paying recurrent fees for access to a product or service over a period of time.

Accounting Equation

Assets = Liabilities + Owner’s Equity.