Inventories refer to
A)goods which have been presold before they are produced.
B)goods that have been produced but not yet sold.
C)goods that have been planned but not yet produced.
D)goods that have been produced and sold in the same year.
E)goods that have been sold but are waiting to be picked by customers.

Question

Quizplus · Accepted Answer

Inventories refer to goods that have been produced but not yet sold. This can include raw materials, work-in-progress, and finished goods that are waiting to be sold. Option A is incorrect because presold goods do not technically qualify as part of inventory until they are produced. Option C is incorrect because planned goods have not yet reached the production stage. Option D is incorrect because sold goods are no longer part of inventory. Option E is incorrect because sold goods waiting to be picked up by customers are considered accounts receivable, not inventory.

Inventories Refer to