The Following Statements Regarding Merchandise Inventory Are True Except

Multiple Choice

The following statements regarding merchandise inventory are true except:

A) Merchandise inventory refers to products a company owns and intends to sell.
B) Merchandise inventory appears on the balance sheet of a service company.
C) Purchasing merchandise inventory is part of the operating cycle for a business.
D) Merchandise inventory is reported on the balance sheet as a current asset.
E) Merchandise inventory may include the costs of freight in and making them ready for sale.