Lesson 6

Question 1

Define inventory

Answer 1

1. Assets held for sale in normal course of business (trading stock)
2. Or in process of production for such sale (raw material)
3. Or in the form of materials and supplies to be consumed in the production process, or In the rendering of services (utilities)

Question 2

What is inventory of retailor or wholesaler

Answer 2

Merchandise/products

Question 3

What is inventory of a manufacturer

Answer 3

1. Finished goods
2. Raw materials
3. Work in progress
4. Consumables - packaging, etc