Question

Which of the following is an example of an inventory?

• A. A freezer full of ice cream to be served at a party next week.
• B. Taking out a loan from a bank.
• C. A shopping cart.
• D. A house that is for sale by the owner.

Hint:

Ask which option is a stock of goods kept for later use.

Answer 1

The Correct Option is A

Step 1: Inventory means goods that a business holds in stock to use or sell later. Step 2: A freezer full of ice cream kept ready for a party next week is stock being held for future use, so it fits the definition of inventory. Step 3: Taking a loan is a financial transaction, not a stock of goods. Step 4: A shopping cart is equipment used to move goods, not the goods themselves. Step 5: A house listed for sale by its owner is a one-time asset sale, not stock held by a business for resale. The correct example of inventory is option 1.