Which One of the Following Types of Inventory Accounts Would

question 128

Multiple Choice

Which one of the following types of inventory accounts would be used by a wholesaler or retailer?

• A)Raw Materials Inventory
• B)Work-in-Process Inventory
• C)Finished Goods Inventory
• D)Merchandise Inventory

---

Definitions:

Liquidation Proceeds

The funds that are received as a result of liquidating, or selling off, a company's assets, typically occurring during bankruptcy or when a company closes.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Constant Growth

Constant growth refers to a situation where a quantity or system experiences growth at a steady and unvarying rate over a period of time, often used in dividend growth models.