Question

The Merchandise Inventory account is an expense account that is used only for goods purchased that the business owns and intends to resell to customers.

True / False.

Answer 1

The correct answer is False.

Step-by-step explanation:

The merchandise inventory account is an asset account, and corresponds to the set of assets owned by a company that have been acquired with the aim of selling them again in the same state in which they were purchased, or to be transformed into another type of goods and sold as such.