Asked by Karina Garcia on Jul 20, 2024
Verified
In a manufacturing company balance sheet manufacturing inventories are reported in the current assets section in the order of their expected use in production.
Manufacturing Inventories
Materials, work-in-progress, and finished goods that a company holds for the purpose of future production or sale.
Current Assets
Assets that a company expects to convert to cash or use up within one year.
Balance Sheet
A financial statement that reports the assets, liabilities, and owner’s equity at a specific date.
- Familiarize oneself with the contrasts between distinct classifications of inventories and their exhibition in financial accounts.
Verified Answer
CV
Can Vala ÖNENGÜTJul 20, 2024
Final Answer :
False
Explanation :
Manufacturing inventories are reported in the current assets section, but they are typically listed in the order of liquidity, not necessarily in the order of their expected use in production.
Learning Objectives
- Familiarize oneself with the contrasts between distinct classifications of inventories and their exhibition in financial accounts.
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