Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is NOT considered inventory on a company's balance sheet?

Work-in-process goods

Office supplies used by administrative staff

Raw materials held for production

Finished goods ready for sale

Previous problemNext problem

Verified step by step guidance

Understand the definition of inventory: Inventory refers to assets that are intended for sale, are in the process of being produced for sale, or are used in the production of goods or services. Common categories include raw materials, work-in-process goods, and finished goods.

Analyze each option: Work-in-process goods are partially completed products that are still in production, and they are considered inventory. Raw materials held for production are also inventory because they are used to create finished goods. Finished goods ready for sale are inventory because they are the final products intended for sale.

Consider office supplies: Office supplies used by administrative staff are not considered inventory because they are not directly related to the production or sale of goods. Instead, they are classified as an expense or an asset under 'supplies' on the balance sheet.

Review the classification: Inventory is specifically tied to goods that are part of the production and sales process. Items like office supplies, which are used for administrative purposes, do not meet this definition.

Conclude the analysis: Based on the definitions and classifications, office supplies used by administrative staff are NOT considered inventory on a company's balance sheet.