Inventory held by the client should be classified as _______.

Name: Inventory held by the client should be classified as _______.
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Question

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Inventory is a current asset that is held by the client to be sold in the normal course of business. It should be reported as such on the balance sheet. It is not reported as revenue until it is sold, and it is not reported as cost of goods sold until it is sold and recognized as an expense. It is not a liability because it is not owed to a third party.

Inventory Held by the Client Should Be Classified as _______