Merchandise inventory is
A) reported under the classification of Property, Plant, and Equipment on the balance sheet.
B) often reported as a miscellaneous expense on the income statement.
C) reported as a current asset on the balance sheet.
D) generally valued at the price for which the goods can be sold.

Question

Quizplus · Accepted Answer

Merchandise inventory is a current asset because it is expected to be converted into cash within a year. It is reported on the balance sheet at its cost, which is the price paid to acquire the inventory, and not the price for which the goods can be sold.

Merchandise Inventory Is