Asked by Gursave Singh on May 27, 2024
Verified
Merchandise inventory is reported in the long-term assets section of the balance sheet.
Long-Term Assets
Assets that a company intends to hold for more than one year, including property, plant, and equipment.
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial condition.
- Understand the principle of merchandise inventory, including how it is reported and its importance within the operating cycle of a merchandising company.
Verified Answer
HP
Harpreet ParharMay 30, 2024
Final Answer :
False
Explanation :
Merchandise inventory is reported in the current assets section of the balance sheet, not the long-term assets section.
Learning Objectives
- Understand the principle of merchandise inventory, including how it is reported and its importance within the operating cycle of a merchandising company.
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