Inventory is a balance sheet line item that includes all items used in the creation of products. Which of the following is classified as products ready to ship to customers?
Cash
Raw materials
Finished goods
Work in progress
The products that are ready to ship to customers are
classified as "Finished goods".
Inventory is an asset account on the balance sheet that
includes all items that a company intends to sell, such as raw materials,
work-in-progress, and finished goods. Raw materials are the items that are used
in the production of finished goods, while work-in-progress refers to products
that are still in the production process and are not yet completed. Finished
goods are the final products that are ready to be sold or shipped to customers.
Therefore, finished goods are the inventory items that are classified as
products ready to ship to customers.
No comments:
Post a Comment