Asked by Albin Mathew on May 28, 2024
Verified
Inventory is classified as a current asset in a classified balance sheet.
Inventory
The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.
Current Asset
An asset that is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.
Classified Balance Sheet
A financial statement that organizes a company's assets, liabilities, and equity into subcategories for clear understanding.
- Acquire knowledge about the perpetual and periodic inventory mechanisms and their repercussions on bookkeeping records.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
Inventory is classified as a current asset because it is expected to be sold, used, or consumed within one year of the balance sheet date.
Learning Objectives
- Acquire knowledge about the perpetual and periodic inventory mechanisms and their repercussions on bookkeeping records.