Inventory is an asset on the balance sheet and a _____ on the income statement.
A) liability
B) footnote
C) statement
D) variable expense

Question

Quizplus · Accepted Answer

Inventory is not considered a liability or a statement on the income statement. It is also not discussed in a footnote. Instead, inventory is included as a variable expense on the income statement as it is counted as a cost of goods sold when calculating net income.

Inventory Is an Asset on the Balance Sheet and a _____