If inventories are valued using the retail inventory method, they should not be classified as a current asset on the balance sheet.

Question

Quizplus · Accepted Answer

Inventories, regardless of the valuation method used (including the retail inventory method), are classified as current assets on the balance sheet because they are expected to be sold or used within the normal operating cycle of the business, typically within one year.

If Inventories Are Valued Using the Retail Inventory Method, They