On the balance sheet of a retailer,the Merchandise Inventory account ________.
A) is not included because it is an income statement account
B) is included in the current assets section
C) is listed after prepaid assets
D) represents the value of inventory that has been sold during the period

Question

Quizplus · Accepted Answer

Merchandise Inventory is an asset account and is included in the current assets section of the balance sheet. Option A is incorrect because Merchandise Inventory is not an income statement account. Option C is incorrect because prepaid assets are listed separately from Merchandise Inventory. Option D is incorrect because Merchandise Inventory represents the value of inventory that has not been sold yet, not the inventory that has been sold.

On the Balance Sheet of a Retailer,the Merchandise Inventory Account