A merchandising firm reports ________ as a current asset on the balance sheet.
A) Raw Materials Inventory
B) Finished Goods Inventory
C) Work-in-Process Inventory
D) Merchandise Inventory

Question

Quizplus · Accepted Answer

A merchandising firm sells finished goods, not raw materials or work-in-process inventory. Therefore, the only appropriate current asset on the balance sheet is Merchandise Inventory.

A Merchandising Firm Reports ________ as a Current Asset on the Balance