Inventory does not include:
A) Materials used in the production of goods to be sold.
B) Assets intended to be sold in the normal course of business.
C) The cost of office equipment.
D) Assets currently in production for normal sales.

Question

Quizplus · Accepted Answer

Inventory refers to the goods or products that a business intends to sell to generate revenue. Materials used in production, assets intended for sale, and assets currently in production are all considered inventory. Office equipment, on the other hand, is a fixed asset and not intended for sale in the normal course of business, so it is not considered part of inventory.

Inventory Does Not Include