Question

Which of the following statements concerning inventory is correct?

1) inventory is not reported as a current asset
2) Inventory is a non-current asset because it is held for sale in the ordinary course of business and is not available to meet current obligations
3) inventory is reported as a current asset because it has been sold
4) inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date

Answer 1

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

Step-by-step explanation:

The correct statement concerning inventory is option 4) inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date.