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Commerce · Q251

Accounting

Graduate and Post Graduate · Commerce · question 251

Q251

Stock of a Trading concern consists of

A.
Raw material
B.
Work in progress
C.
Merchandise inventory
Answer
D.
All of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Stock of a Trading concern consists of Merchandise inventory. Merchandise inventory is the cost of goods on hand and available for sale at any given time. Merchandise inventory (also called Inventory) is a current asset with a normal debit balance meaning a debit will increase and a credit will decrease.