Question:medium

Which of the following is an example of an inventory?

Show Hint

Ask which option is a stock of goods kept for later use.
  • A freezer full of ice cream to be served at a party next week.
  • Taking out a loan from a bank.
  • A shopping cart.
  • A house that is for sale by the owner.
Show Solution

The Correct Option is A

Solution and Explanation

A quick way to check this question is to ask, for each option, is this a stock of goods waiting to be used or sold. A loan is money borrowed, which changes financial capital, not physical stock, so it is ruled out. A shopping cart is a tool used to carry goods while shopping, so it does not itself count as inventory. A house being sold by its owner is a single asset changing hands, not goods held in stock by a firm for its regular business. The ice cream stored in a freezer, meant to be served later at a party, is exactly stock kept aside for future use, which is the core idea of inventory. \[\boxed{\text{Option 1: the freezer full of ice cream}}\]
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