Which of the Following Should Not Be Classified as Inventory

question 49

Multiple Choice

Which of the following should not be classified as inventory in the balance sheet of a large automobile dealership?

• A)Pickup trucks offered for sale.
• B)Used cars taken in trade and offered for sale on the company's used-car lot.
• C)Spark plugs,oil filters,and other parts which are intended for use by the service department in repairing and servicing customers' cars.
• D)"Company cars" provided to specific company executives for their personal use.

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Definitions:

Industry

A group of companies that operate in a specific sector of the economy, manufacturing or supplying goods and services in a particular domain.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Centrally Planned Economy

An economic system where the government or central authority makes all decisions about the production and distribution of goods and services.

Market Economy

An economic system where supply and demand from consumers and businesses drive the production of goods and services and set prices.