accounting tes 3

Where is inventory classified in the financial statements?

As a current asset in the balance sheet

When inventory is sold, the cost of inventory is recognized as a(n)

expense

"Cost of sales" is another name for which of the following accounts?

costs of goods sold

How is cost of goods sold classified in the financial statements?

Expense on income statement

inventory is classified as..

a current asset

How is cost of goods sold classified in the financial statements?

expense in the income statement

A major difference between companies that provide services and companies that manufacture or sell goods is that those that manufacture or sell goods must account for

inventory

Items held for sale in the normal course of business are referred to as

inventory

Companies that produce the inventory they sell are referred to as

manufacturers

Companies that serve as intermediaries between manufacturers and end users typically are referred to as ____ companies

merchandising