Which of the following inventories results in recording an expense when its asset account is reduced in the accounting system?
A) Raw materials
B) Work in process
C) Finished goods inventory
D) Both A and B

Question

Quizplus · Accepted Answer

When inventories are sold from finished goods, the account Finished Goods Inventory is reduced and Cost of Goods Sold Expense is recorded.

Which of the Following Inventories Results in Recording an Expense