Is inventory on the balance sheet?
Understand the Problem
The question is asking whether inventory is listed on the balance sheet, which pertains to accounting practices and financial reporting.
Answer
Inventory is a current asset account found on the balance sheet.
Inventory is a current asset account found on the balance sheet.
Answer for screen readers
Inventory is a current asset account found on the balance sheet.
More Information
Inventory includes raw materials, work-in-progress, and finished goods and is classified as a current asset because it can be converted into cash typically within twelve months.
Tips
Ensure that inventory is correctly classified as a current asset and not confused with long-term assets or expenses.
Sources
- Inventory - Corporate Finance Institute - corporatefinanceinstitute.com
- How to Analyze Inventory on a Balance Sheet - Sortly - sortly.com
- What Is Inventory? Definition, Types, and Examples - Investopedia - investopedia.com
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