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

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Multiple Choice

Inventory which is partially complete is known as:

Finished goods inventory

Merchandise inventory

Work-in-process inventory

Raw materials inventory

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Verified step by step guidance

Understand the concept of inventory: Inventory refers to the goods and materials that a business holds for the purpose of resale or production. It is classified into different categories based on its stage in the production process.

Learn about the types of inventory: The main types of inventory include raw materials inventory (materials used to produce goods), work-in-process inventory (partially completed goods), finished goods inventory (completed goods ready for sale), and merchandise inventory (goods purchased for resale).

Focus on work-in-process inventory: Work-in-process inventory refers to goods that are in the middle of the production process. These items are not yet finished but have undergone some level of transformation from raw materials.

Compare work-in-process inventory with other types: Unlike raw materials inventory, which consists of unprocessed materials, and finished goods inventory, which includes completed products, work-in-process inventory represents items that are partially complete. Merchandise inventory, on the other hand, applies to businesses that purchase goods for resale rather than manufacturing them.

Apply the concept to the question: Based on the definitions, inventory that is partially complete aligns with the description of work-in-process inventory. This is the correct classification for goods that are in the production process but not yet finished.