How are goods that are purchased for resale at a later date recorded in the financial statements?
A)as inventory
B)as prepaid expenses
C)as cost of goods sold
D)as operating expenses

Question

Quizplus · Accepted Answer

Goods purchased for resale are considered inventory and are recorded as such in the financial statements. They are not considered prepaid expenses, cost of goods sold, or operating expenses until they are sold.

How Are Goods That Are Purchased for Resale at a Later