Final answer:
Merchandise inventory is not classified with investments on the balance sheet.
Step-by-step explanation:
No, merchandise inventory is not classified with investments on the balance sheet. Merchandise inventory is a current asset that represents the value of goods held by a company for sale. It includes items that are either in the process of being produced or are ready for sale in the ordinary course of business.
On the other hand, investments are long-term assets that are held by a company to generate income or for capital appreciation. These may include stock investments, bonds, mutual funds, or real estate.