Question

Goods purchased for the purpose of resale termed as
BEEBBEBEBA
O Expenses
o
Stock
Assets
o
Purchases​

Answer 1

Explanation:

Cost of goods purchased is a direct cost. Purchasing and selling of goods is a trading activity of the firm. All expenses incurred for the trading activities are part of revenue expenditure

Answer 2

Goods purchased for the purpose of resale termed as Stock.

Stock:

• The goods which are purchased for the purpose of resale are known as Stock or Inventory.
• It is referred as a value of all the items which are available and sold directly to the customers.
• In other words, these are the items which the business has bought for the purpose of  on-selling to the customers.
• These items can be either sold directly without any change to the customers or can be changed into new product and then, sold to the customers.
• These are the financial assets of the company as they can be liquidated into cash.
• Hence, the correct answer among all the options is Stock.

Explanation for the Incorrect answers:

• Expenses are company's ongoing costs.
• Assets can be either a physical or a valuable thing or something which is beneficial for the company.
• Purchases is something which is acquired.

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