Inventories are reported in the current assets section of the statement of financial position immediately before receivables.

Question

Quizplus · Accepted Answer

Inventories are reported as a current asset because they are expected to be sold or used within the next 12 months. They are reported before receivables, which are also a current asset but represent money owed to the company by customers or clients.

Inventories Are Reported in the Current Assets Section of the Statement