Why is inventory reported as a current asset?
A) Inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date.
B) Inventory is not reported as a current asset.
C) Inventory is not a current asset; it is a noncurrent asset because inventory is often sold on account and not for cash.
D) Inventory is reported as a current asset because it has been sold.

Question

Quizplus · Accepted Answer

Inventory is reported as a current asset because it is expected to be sold within a year and converted into cash. As a result, it is included in the current assets section of the balance sheet.

Why Is Inventory Reported as a Current Asset