Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):
A) financial consultant.
B) apparel boutique.
C) automobile company.
D) insurance company.

Question

Quizplus · Accepted Answer

Direct materials, work-in-process, and finished goods inventory are commonly associated with manufacturing companies such as automobile companies, which have raw materials and unfinished products in inventory before they are completed and sold. Financial consultants, apparel boutiques, and insurance companies typically do not have significant inventory of this nature.

Direct Materials, Work-In-Process, and Finished Goods Inventory Are Most Likely