Which of the following are common classifications for inventories in the financial statements: $\begin{array}{lllll}&I.&II.&III.&IV\
\text { Raw materials } & \text { No } & \text { Yes } & \text { No } & \text { Yes } \
\text { Finished goods } & \text { Yes } & \text { Yes } & \text { Yes } & \text { Yes } \
\text { Work in progress } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\text { Assets held for resale } & \text { Yes } & \text { No } & \text { No } & \text { Yes }
\end{array}$
A) I.
B) II.
C) III.
D) IV.

Question

Quizplus · Accepted Answer

IV is the correct choice because it includes all common classifications for inventories: Raw Materials, Finished Goods, Work in Progress, and Assets Held for Resale. These categories comprehensively cover the types of items that businesses typically hold in their inventory for the production and sale of goods.

Which of the Following Are Common Classifications for Inventories in the Financial