The inventory of an existing business: a. Is always current and salable b. Usually appreciates over time, making the business a bargain c. Needs to be checked for age and salability d. Is usually stated honestly and does not need independent auditing

Question

Eddie Mcneil

Business

17 October, 17:56

The inventory of an existing business: a. Is always current and salable b. Usually appreciates over time, making the business a bargain c. Needs to be checked for age and salability d. Is usually stated honestly and does not need independent auditing

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Answers (1)

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Mariela · Answer 1

The correct option is C, needs to be checked for age and sale-ability

Explanation:

The items of inventory of a business needs to checked on an ongoing basis to ascertain its age, hence its present condition in order to determine whether or not its fitness for purpose.

It would be detrimental to a business to sell an expired item to customers as that brings about grave consequences in terms of loss of reputation and customers boycotting its products in future which could lead to the business folding up as the sole reason for being in business is to satisfy customers' needs.