Final answer:
Manufacturing concerns typically have three inventory accounts: raw materials, work-in-progress, and finished goods. In contrast, merchandising concerns generally have one inventory account for merchandise inventory. The merchandise and current account balances are critical financial metrics for assessing business or economic health.
Step-by-step explanation:
In a manufacturing concern, typically three types of inventory accounts appear on the balance sheet: raw materials, work-in-progress, and finished goods. Raw materials are the components that are used to produce goods, work-in-progress inventory consists of items currently being manufactured, and finished goods are completed products that are ready to be sold. On the other hand, a merchandising concern, which purchases goods for resale, usually has only one inventory account, termed as merchandise inventory.
The merchandise balance in a company's financial statement refers to the difference between the value of goods a country exports and imports, while the current account balance includes the merchandise balance plus net income from abroad and net current transfers. These figures offer essential insights into the financial health of a business or the economic standing of a country.