Inventory:
A)Consists of all goods owned and held for sale to customers.
B)Is a non-financial asset.
C)Both consists of all goods owned and held for sale to customers and is a non-financial asset.
D)Both consists of all goods owned and held for sale to customers and is a financial asset.

Question

Quizplus · Accepted Answer

Inventory consists of all goods that a company owns, intends to sell, or uses in its production process. Therefore, it is a non-financial asset as it cannot be readily converted into cash. Hence, option C, which states that inventory consists of all goods owned and held for sale to customers and is a non-financial asset, is the correct option.