What amount would you find on financial statements of merchandising companies that is referred to as finished goods inventory for a manufacturing company?
A)purchases
B)cost of goods purchased
C)merchandise inventory
D)raw materials inventory

Question

Quizplus · Accepted Answer

Finished goods inventory for a manufacturing company is similar to merchandise inventory for a merchandising company. It refers to the inventory of completed products that are ready for sale. Therefore, the amount that would be found on financial statements of merchandising companies as merchandise inventory would be referred to as finished goods inventory for a manufacturing company.

What Amount Would You Find on Financial Statements of Merchandising