The Cost of Inventory That Is Still on Hand and Has

question 169

Multiple Choice

The cost of inventory that is still on hand and has not been sold to customers is called:

• A) cost of goods sold, an expense that appears on the balance sheet.
• B) inventory, a current asset that appears on the income statement.
• C) inventory, a current asset that appears on the balance sheet.
• D) purchases, an expense that appears on the income statement.

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Definitions:

Current Expenditures

Expenses a company or government incurs through its daily operations that are not capitalized or reported as investments.

Future Taxes

Taxes that are expected to be imposed or increased in the future, impacting current financial planning and decision-making.

Personal Income Tax

A tax levied on individuals' earnings from wages, investments, and other sources.

Bottom Half

This term usually refers to the lower 50% of income earners in a given population.