Which one of the following is true concerning manufacturing and merchandising companies' inventories? Entry field with incorrect answer The balance sheet for both types of companies reports one category for inventories. Manufacturing companies report inventories in the order of liquidity. Both types of companies subtract total inventories from sales revenue on the income statement. Goods available for sale consist of Merchandise Inventory for merchandisers and Work in Process for manufacturers.

Question

Maeve Henderson

Business

10 September, 08:45

Which one of the following is true concerning manufacturing and merchandising companies' inventories? Entry field with incorrect answer The balance sheet for both types of companies reports one category for inventories. Manufacturing companies report inventories in the order of liquidity. Both types of companies subtract total inventories from sales revenue on the income statement. Goods available for sale consist of Merchandise Inventory for merchandisers and Work in Process for manufacturers.

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Answers (1)

Know the Answer?

Tyler Bartlett · Answer 1

The balance sheet for both types of companies reports one category for inventories

Explanation:

The presentation on balance sheet for both companies show one line item of inventory. The Notes to the financial statement then presents a full disclosure of the different components that make up the inventory amount.