For John Deere, a tractor and farm equipment manufacturer, spark plugs to be installed in its equipment would be classified on the balance sheet as

Question

Quizplus · Accepted Answer

Spark plugs would be considered as inventory because they are a type of product that John Deere sells and intends to sell in the normal course of business. They have not yet been used or consumed, so they are not considered a prepaid expense or supplies. They are also not considered equipment or subject to depreciation until they have been installed in a piece of equipment.

For John Deere, a Tractor and Farm Equipment Manufacturer, Spark