What U.S.term was equivalent to "inventories" as it was used in financial statements of companies located in the United Kingdom,prior to adoption of IFRS in 2005?
A)operating assets
B)consumables
C)stocks
D)merchandise

Question

Quizplus · Accepted Answer

In the United States, the term "inventory" has been commonly used in financial statements to refer to the goods held for sale or used in the production of goods to be sold. Similarly, in the United Kingdom, the term "stocks" was used for the same purpose prior to the adoption of IFRS in 2005. Therefore, choice C is the best option as it is a direct equivalent to "inventories" in the UK financial statements. Choices A, B, and D are not accurate as they do not specifically refer to goods held for sale or used in production.

What USterm Was Equivalent to "Inventories" as It Was Used in in Financial