Question

Which one of the following would not be found in a merchandising company?

A. Beginning inventory.
B. Cost of goods sold.
C. Ending inventory.
D. Gross profit.
E. Work-in-proces.

Answer 1

In a merchandising company, Work-in-process would not be found. Instead, it would have Beginning Inventory, Cost of Goods Sold, Ending Inventory, and Gross Profit.

Step-by-step explanation:

In a merchandising company, Work-in-process would not be found. Work-in-process refers to the partially completed products in a manufacturing company, not in a merchandising company, which primarily sells finished goods.

Instead, a merchandising company would have the following:

• Beginning Inventory: The value of the inventory at the start of the accounting period.
• Cost of Goods Sold: The total cost of the inventory sold during the accounting period.
• Ending Inventory: The value of the remaining inventory at the end of the accounting period.
• Gross Profit: The difference between net sales revenue and the cost of goods sold.