Which of the Following Accounts Would Appear in the Current

question 104

Multiple Choice

Which of the following accounts would appear in the current asset section of a merchandiser's balance sheet?

• A) Direct materials inventory
• B) Finished goods inventory
• C) Merchandise inventory
• D) Work in process inventory

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Definitions:

Par Preferred Stock

Preferred shares of a company's stock with a fixed face value that typically determines dividend payments.

Par Common Stock

This is a classification of common stock that has a nominal value assigned in the corporate charter and is used in the accounting records.

Shares

Units of ownership in a company or financial asset.

Retained Earnings

The portion of a business's profits not distributed to shareholders, instead being reinvested in the business or used to pay off debt.