Inventory is
A) reported under the classification of Property Plant and Equipment on the balance sheet.
B) often reported as a miscellaneous expense on the income statement.
C) reported as a current asset on the balance sheet.
D) generally valued at the price for which the goods can be sold.

Question

Quizplus · Accepted Answer

Inventory is reported as a current asset on the balance sheet, representing the value of goods that a company has on hand and available for sale to customers. It is not reported under Property Plant and Equipment (A) as these are long-term assets used in a company's operations. Inventory is not typically reported as a miscellaneous expense on the income statement (B), as it is considered a cost of goods sold and is accounted for separately. Lastly, the value of inventory is generally reported at cost (e.g., FIFO or LIFO), rather than the price for which the goods can be sold (D).

Inventory Is