Finished goods inventory is reported on the
A) income statement as a period cost
B) balance sheet as a long-term asset
C) balance sheet as a current asset
D) income statement as revenue

Question

Quizplus · Accepted Answer

Finished goods inventory is a type of inventory that is ready for sale to customers. As such, it is treated as a current asset on the balance sheet, indicating that it is expected to be converted into cash within one year. It is not reported on the income statement as a cost or revenue, as it does not represent a transaction that directly impacts revenue or expenses.

Finished Goods Inventory Is Reported on the