Inventory Becomes Part of Cost of Goods Sold When a Company

question 73

Multiple Choice

Inventory becomes part of Cost of Goods Sold when a company:

• A)receives the inventory.
• B)purchases the inventory.
• C)sells the inventory.
• D)makes payment on the inventory.

---

Definitions:

Amylase

An enzyme that catalyzes the hydrolysis of starch into sugars, present in saliva and pancreatic fluid.

Starch

A carbohydrate consisting of a large number of glucose units joined by glycosidic bonds, primarily found in plants and used as an energy store.

Carboxypeptidase

An enzyme that breaks down proteins by hydrolyzing the peptide bonds at the carboxyl end of the protein.

Microvilli

Minute projections from the surface of some cells, increasing surface area and facilitating absorption, such as in the intestines.