Which one of the following items is reported as a current asset on a classified balance sheet?
A)Inventory
B)Accounts payable
C)Land
D)Common stock

Question

Quizplus · Accepted Answer

Inventory is reported as a current asset on a classified balance sheet because it represents goods that a company intends to sell within the next year or operating cycle, whichever is longer. Accounts payable, land, and common stock are not current assets. Accounts payable is a current liability, land is a long-term asset, and common stock is a component of shareholders' equity.

Which One of the Following Items Is Reported as a Current