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

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Multiple Choice

Which of the following is NOT a type of inventory typically reported on a company's balance sheet?

Finished goods

Work in process

Raw materials

Accounts receivable

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Verified step by step guidance

Understand the concept of inventory: Inventory refers to the goods and materials a company holds for the purpose of resale or production. It is typically classified into three categories: finished goods, work in process, and raw materials.

Review the types of inventory: Finished goods are completed products ready for sale. Work in process refers to partially completed goods still undergoing production. Raw materials are the basic inputs used in the production process.

Identify the item that does not belong: Accounts receivable is not a type of inventory. It represents amounts owed to the company by customers for goods or services already delivered, and it is classified as a current asset on the balance sheet, separate from inventory.

Clarify the distinction: Inventory is a physical asset related to production and sales, while accounts receivable is a financial asset related to credit sales. They are reported in different sections of the balance sheet.

Conclude the reasoning: Since accounts receivable is not a type of inventory, it is the correct answer to the question. The other options (finished goods, work in process, and raw materials) are all valid types of inventory typically reported on a company's balance sheet.