TB MC Qu. 7-43 (Static) Which of the following statements about...

Which of the following statements about inventory classifications is not correct?

Multiple Choice

Manufacturers hold three types of inventory that are referred to as raw materials inventory, work in process inventory, and finished goods inventory.

Inventory may include materials used in producing goods for sale.

Merchandisers buy inventory in finished form ready for resale.

Inventory is classified as a long-term asset on the balance sheet.