Answer
The following items would not be classified as inventory:
2. Cost of goods sold in the income statement.
4. Not reported in the financial statements.
6. Cost of goods sold in the income statement.
7. Cost of goods sold in the income statement.
9. Interest expense in the income statement.
10. Advertising expense in the income statement.
12. Office supplies in the current assets section of the balance sheet.
15. Not reported in the financial statements.
18. Short-term investments in the current asset section of the balance sheet.
Work Step by Step
Items 1, 3, 5, 8, 11, 13, 14, 16, and 17 would be classified as inventory in the financial statements.
