For Product-Based Businesses, ________ Often Represents Their Largest Capital Investment

question 134

Multiple Choice

For product-based businesses, ________ often represents their largest capital investment.

• A)account receivables
• B)inventory
• C)plant and equipment
• D)real estate

---

Definitions:

Written Authorizations

Official documents or agreements that grant permission or rights, often used to approve financial transactions or operations.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without taking deductions for discounts.

Purchase Discounts

A reduction in the price paid for goods or services if payment is made within a specified period, used as an incentive for early payment.

Cash

Money in the form of currency, including bills and coins, that can be used to pay for goods and services.