Which of the following should not be classified as inventory in the balance sheet of a large automobile dealership?
A)Pickup trucks offered for sale.
B)Used cars taken in trade and offered for sale on the company's used-car lot.
C)Spark plugs,oil filters,and other parts that are intended for use by the service department in repairing and servicing customers' cars.
D)"Company cars" provided to specific company executives for their personal use.

Question

Quizplus · Accepted Answer

"Company cars" provided to specific company executives for their personal use should not be classified as inventory because they are not intended for sale. The other options listed are all items that are intended for sale or use in the business and therefore should be classified as inventory on the balance sheet.

Which of the Following Should Not Be Classified as Inventory