Question 2: MCQ 10 points (2.5 points each) 1. In a manufacturing business, inventory that is ready for sale is called a. raw materials inventory. b. work in process inventory. C. finished goods inventory. d. none of the above 2. Merchandise inventory is a. reported under the classification of Property, plant, and Equipment on the statement of financial position. b. often reported as a miscellaneous expense on the income statement. c. reported as a current asset on the statement of financial position. d. none of the above 3. The book value of an asset is equal to the a. asset's fair value less its historical cost. b. replacement cost of the asset. c.asset's cost less accumulated depreciation. d. none of the above 4. Depreciation is a process of a. asset devaluation b. cost accumulation. C. cost allocation. d. none of the above