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

5. Inventory

Inventory Errors

Financial Accounting

5. Inventory

Inventory Errors

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

Inventory which is completed but not yet sold by a manufacturer is known as:

Finished goods

Raw materials

Work in process

Merchandise inventory

Previous problemNext problem

Verified step by step guidance

Understand the concept of inventory in manufacturing: Inventory refers to the goods and materials that a business holds for the purpose of resale or production.

Learn the types of inventory: In manufacturing, inventory is categorized into raw materials, work in process, and finished goods.

Define 'finished goods': Finished goods are products that have completed the manufacturing process and are ready for sale but have not yet been sold.

Compare the options provided: Raw materials are unprocessed inputs used in production, work in process refers to partially completed goods, and merchandise inventory typically applies to retail businesses rather than manufacturers.

Conclude that the correct term for inventory completed but not yet sold by a manufacturer is 'Finished goods'.