Culver Company purchases the majority of its inventory from three primary suppliers for re-sale to customers around the world. Culver Company's statement of financial position will include
A) Finished goods inventory.
B) Work-in-process inventory.
C) Merchandise inventory.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

Culver Company's primary business is re-selling inventory, so the most appropriate inventory account on their statement of financial position is Merchandise Inventory. Finished goods and work-in-process inventory accounts are more commonly used for manufacturing companies.

Culver Company Purchases the Majority of Its Inventory from Three