multiple choice question which of the following statements concerning inventory is correct? inventory is…

multiple choice question which of the following statements concerning inventory is correct? inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date. inventory is reported as a current asset because it has been sold. inventory is not reported as a current asset. inventory is a non - current asset because it is held for sale in the ordinary course of business and available to meet current obligation

multiple choice question which of the following statements concerning inventory is correct? inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date. inventory is reported as a current asset because it has been sold. inventory is not reported as a current asset. inventory is a non - current asset because it is held for sale in the ordinary course of business and available to meet current obligation

Answer

Brief Explanations:

Inventory is a current - asset as it is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer. It is held for sale in the ordinary course of business and is available to meet current obligations. The statement that inventory is reported as a current asset because it will be converted into cash within a year of the balance - sheet date is correct. Inventory that has been sold is no longer inventory. Inventory is not a non - current asset.

Answer:

Inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date.