- It refers to the products in which the business unit is dealing, i.e. in terms of which it is buying and selling or producting and selling.
- The items that are purchased for use in the business are not called goods.
- For example, for a furniture dealer purchase of chairs and tables is termed as goods, while for other it is furniture and is treated as an asset.
- Similarly, for a stationery merchant, stationery is goods, whereas for others it is an item of expense (not purchases)
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