Asked by Corren Bouton on Jul 27, 2024
Verified
In retail businesses, inventory is reported as a current asset.
Current Asset
Assets likely to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.
- Clarify the distinctions between non-stop and interval-based inventory systems, and their respective bookkeeping transactions.
Verified Answer
LT
Lewden TristanAug 01, 2024
Final Answer :
True
Explanation :
Inventory is considered a current asset because it is expected to be sold within a year or within the normal operating cycle of the business.
Learning Objectives
- Clarify the distinctions between non-stop and interval-based inventory systems, and their respective bookkeeping transactions.
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