On a balance sheet for a merchandiser,Merchandise Inventory is listed as a(n)________.
A) current asset
B) current liability
C) expense
D) revenue

Question

Quizplus · Accepted Answer

Merchandise Inventory is a current asset because it is an inventory of goods that are expected to be sold within the next year or operating cycle, whichever is longer. It is a key component of a merchandiser's business operations and is an important factor in calculating the cost of goods sold and determining profitability.

On a Balance Sheet for a Merchandiser,Merchandise Inventory Is Listed