Question

Where is merchandise inventory reported on the balance sheet?

1) Current assets section
2) Long-term assets section
3) Liabilities section
4) Equity section

Answer 1

Merchandise inventory is reported in the Current Assets section of the balance sheet.

Step-by-step explanation:

Merchandise inventory is reported in the Current Assets section of the balance sheet.

The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity.

Merchandise inventory represents the goods that a company has for sale. It is considered a current asset because it can be sold within a year or an operating cycle, whichever is longer.