The Following Statements Regarding Merchandise Inventory Are True Except:

(Correct Answer Below)

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The Following Statements Regarding Merchandise Inventory Are True Except:

1)reported on the balance sheet as a current asset. 2) refers to products a company owns and intends to sell. 3) may include the costs of freight in and making them ready for sale. 4) appears on the balance sheet of a service company. 5) Purchasing it is part of the operating cycle for a business.
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Merchandise inventory appears on the balance sheet of a service company.

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