Entity A is an aged cheese producer. The length of the normal operating cycles is 30 months. Should the cheese inventory be considered current?
A) No
B) Yes
C) Only those predicted to be sold in the next 12 months

Question

Quizplus · Accepted Answer

The cheese inventory should be considered current because the normal operating cycle of the business exceeds 12 months, and inventory is classified as current if it is expected to be sold within the normal operating cycle.

Entity a Is an Aged Cheese Producer