Which of the following categories of inventory are

Q: Answer-Which of the following categories of inventory are generally reported by companies in their financia...

As per accounting standards e.g., Ind AS 2 Inventories, companies typically classify and report inventory under three main categories 1. Raw materials Items consumed in the production process including consumable stores. 2. Work-in-progress WIP Goods that are partially completed and still undergoing production. 3. Finished goods Goods fully manufactured or completed and held for sale in the ordinary course of business.

generally reported by companies in their financial statements?

A Raw materials, processed goods, and final goods Correct Answer Incorrect Answer

B Raw materials, work-in-progress, and final goods Correct Answer Incorrect Answer

C Purchased goods, work-in-progress, and finished goods Correct Answer Incorrect Answer

D Raw materials, work-in-progress, and finished goods Correct Answer Incorrect Answer

E Purchased goods, processed goods, and finished goods Correct Answer Incorrect Answer

Solution

As per accounting standards (e.g., Ind AS 2 – Inventories), companies typically classify and report inventory under three main categories: 1. Raw materials → Items consumed in the production process (including consumable stores). 2. Work-in-progress (WIP) → Goods that are partially completed and still undergoing production. 3. Finished goods → Goods fully manufactured or completed and held for sale in the ordinary course of business.

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SIDBI Grade A (Assistant Manager)

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