The unsold goods are ______________?
Correct answer: D. Inventory
- A. Equity
- B. Sale return
- C. Purchases
- D. Inventory
Explanation
Unsold goods held for resale are closing inventory, also called stock. They are reported as a current asset and reduce the cost of goods sold.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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