Which of the following is typically recorded in an inventory ledger?

The inventory ledger is used to track inventory-related transactions, particularly the cost of goods sold (COGS) and various stock activities. COGS reflects the cost incurred by a company for the goods that have been sold during a specific period, which is essential for determining gross profit. Recording COGS in the inventory ledger helps businesses monitor how much they are spending on inventory that translates into sales.

In addition to COGS, the inventory ledger may also track creditors who supply goods, drawing accounts that indicate inventory used for personal purposes (if it applies to the structure of the business), and stock losses, which represent any decrease in inventory due to spoilage, theft, or loss. These components provide a comprehensive view of how inventory affects the overall financial situation of the business.

Other choices include elements that do not directly relate to inventory management. For instance, revenue is tied to sales transactions rather than inventory itself, while cash flow and equity pertain to overall financial movement and ownership stakes, respectively, rather than the specifics of inventory tracking. Sales and payroll focus more broadly on revenue and employee expenses, which do not represent elements typically logged in an inventory ledger. Thus, the focus on COGS and inventory-related matters makes the identified choice the most appropriate