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Commerce · Q225

Accounting

Graduate and Post Graduate · Commerce · question 225

Q225

Merchandise on hand at either the beginning or end of the accounting period is called

A.
Raw material
B.
Cost of goods sold
C.
Work in progress
D.
Inventory
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Merchandise on hand at either the beginning or end of the accounting period is called Inventory. Inventory is the array of finished goods or goods used in production held by a company. Inventory is classified as a current asset on a company's balance sheet, and it serves as a buffer between manufacturing and order fulfillment.