Which term refers to the quantity of goods a firm has on hand?

Which term refers to the quantity of goods a firm has on hand?

• A. Inventory
• B. Accounts Receivable
• C. Accounts Payable
• D. Outstanding share capital

Answer: (A)

Inventory represents the quantity of goods a firm has on hand. It covers raw materials, work-in-progress, and finished goods held for sale, and it is considered a current asset on the balance sheet that ties up capital tied up until those goods are sold or used. The other terms describe different concepts: accounts receivable are amounts customers owe to the firm, accounts payable are amounts the firm owes to suppliers, and outstanding share capital refers to the equity issued to shareholders. So, the term that matches the description is inventory.

Inventory represents the quantity of goods a firm has on hand. It covers raw materials, work-in-progress, and finished goods held for sale, and it is considered a current asset on the balance sheet that ties up capital tied up until those goods are sold or used. The other terms describe different concepts: accounts receivable are amounts customers owe to the firm, accounts payable are amounts the firm owes to suppliers, and outstanding share capital refers to the equity issued to shareholders. So, the term that matches the description is inventory.