The Following Statements Regarding Merchandise Inventory Are True Except

question 55

Multiple Choice

The following statements regarding merchandise inventory are true except:

• A) Merchandise inventory refers to products a company owns and intends to sell.
• B) Merchandise inventory appears on the balance sheet of a service company.
• C) Purchasing merchandise inventory is part of the operating cycle for a business.
• D) Merchandise inventory is reported on the balance sheet as a current asset.
• E) Merchandise inventory may include the costs of freight in and making them ready for sale.

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