Which of the following are common classifications for inventories in the financial statements: I . I I . I I I . I V Raw materials No Yes No Yes Finished goods Yes Yes Yes Yes Work in progress No No Yes Yes Assets held for resale Yes No No Yes \begin{array}{lllll} & I. & II. & III. & IV\ ext { Raw materials } & ext { No } & ext { Yes } & ext { No } & ext { Yes } \ ext { Finished goods } & ext { Yes } & ext { Yes } & ext { Yes } & ext { Yes } \ ext { Work in progress } & ext { No } & ext { No } & ext { Yes } & ext { Yes } \ ext { Assets held for resale } & ext { Yes } & ext { No } & ext { No } & ext { Yes }\end{array} Raw materials Finished goods Work in progress Assets held for resale I . No Yes No Yes II . Yes Yes No No III . No Yes Yes No I V Yes Yes Yes Yes A) I.B) II.C) III.D) IV.

Question

Which of the following are common classifications for inventories in the financial statements:   I . I I . I I I . I V  Raw materials   No   Yes   No   Yes   Finished goods   Yes   Yes   Yes   Yes   Work in progress   No   No   Yes   Yes   Assets held for resale   Yes   No   No   Yes  \begin{array}{lllll} & I. & II. & III. & IV\	ext { Raw materials }  &  	ext { No }  &  	ext { Yes }  &  	ext { No }  &  	ext { Yes } \	ext { Finished goods }  &  	ext { Yes }  &  	ext { Yes }  &  	ext { Yes }  &  	ext { Yes } \	ext { Work in progress }  &  	ext { No }  &  	ext { No }  &  	ext { Yes }  &  	ext { Yes } \	ext { Assets held for resale }  &  	ext { Yes }  &  	ext { No }  &  	ext { No }  &  	ext { Yes }\end{array}  Raw materials   Finished goods   Work in progress   Assets held for resale  ​ I .  No   Yes   No   Yes  ​ II .  Yes   Yes   No   No  ​ III .  No   Yes   Yes   No  ​ I V  Yes   Yes   Yes   Yes  ​ A)  I.B)  II.C)  III.D)  IV.

Jinal Patel · Accepted Answer

Final Answer : D, Explanation :  IV is the correct choice because it includes all common classifications for inventories: Raw Materials, Finished Goods, Work in Progress, and Assets Held for Resale. These categories comprehensively cover the types of items that businesses typically hold in their inventory for the production and sale of goods.

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