Which of the Following Is True of Finished Goods Inventory

question 45

Multiple Choice

Which of the following is true of Finished Goods Inventory?

• A) Finished Goods Inventory is an account used by a manufacturer and includes completed goods that have not yet been sold.
• B) Finished Goods Inventory is an account used by a merchandiser and includes completed goods that have not yet been sold.
• C) Finished Goods Inventory is an account used by service companies in lieu of raw materials inventory.
• D) Finished Goods Inventory is an account used by a manufacturer in lieu of raw materials inventory.

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Definitions:

Trade Alliance

A partnership between two or more countries or organizations to improve trade relations and economic cooperation.

Initial Public Offering

The first sale of a company’s shares to the public, leading to a stock exchange listing.

Entrepreneurial Venture

A business undertaking initiated by an individual or group who seeks to innovate, create, and manage the enterprise for growth and profit.

Equity Takeover

The acquisition of control of a company through the purchase of a significant amount of its equity shares.