Question

Inventory is classified on the balance sheet as a

a.current asset
b.term liability
c.current liability
d.term asset

Answer 1

Inventory is classified on the balance sheet as a current asset.

Step-by-step explanation:

Inventory is classified on the balance sheet as a current asset.

A balance sheet is an accounting tool that lists assets and liabilities. An asset is something of value that you own and can use to produce something, while a liability is a debt or something you owe. Inventory is considered a current asset because it is expected to be used or sold within a year.