Which of These Is Not Part of Inventory for a Manufacturing

question 38

Multiple Choice

Which of these is not part of inventory for a manufacturing firm?

• A)Partly completed goods (work in process).
• B)Raw materials.
• C)Finished goods.
• D)None of the above, i.e., all are part of inventory.

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Definitions:

Plant Assets

Long-term tangible assets that are used in the production of goods or services and are not intended for resale, including buildings, machinery, and equipment.

Double-Declining Balance

An accelerated method of depreciation where an asset loses value at double the rate of traditional straight-line depreciation.

Depreciation Method

An accounting technique used to allocate the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Adjusting Journal Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.