Which one of the following would not be recognized as inventory on the statement of financial position of a house building company?
A) Roof tiles on a building site.
B) Timber beams for roofing.
C) Equipment hire paid in advance.
D) A finished house sold subject to contract.

Question

Quizplus · Accepted Answer

Equipment hire paid in advance is a prepaid expense and not inventory. Inventory typically includes items that are held for sale or used in the production of goods for sale, such as materials and finished goods.

Which One of the Following Would Not Be Recognized as Inventory