Asked by Thais De Charentenay on May 09, 2024
Verified
A merchandiser's classified balance sheet reports merchandise inventory as a current asset.
Merchandise Inventory
Goods that a retail or wholesale company intends to sell to customers, recorded as a current asset on the balance sheet.
Classified Balance Sheet
A financial statement that groups assets, liabilities, and equity into categories to provide meaningful information to users.
- Understand the significance of precise inventory maintenance and reporting in financial statements.
Verified Answer
NZ
Nicolette ZalecznyMay 10, 2024
Final Answer :
True
Explanation :
Merchandise inventory is typically classified as a current asset on a merchandiser's balance sheet as it is intended to be sold within the next year.
Learning Objectives
- Understand the significance of precise inventory maintenance and reporting in financial statements.
Related questions
The Adjusting Entry to Reflect Inventory Shrinkage Is a Debit ...
Safeguarding Inventory and Proper Reporting of the Inventory in the ...
Unsold Consigned Merchandise Should Be Included in the Consignee's Inventory
When Ending Inventory Is Understated ...
The Ending Inventory for This Year Is Overstated ...