Asked by aurelia digby on Jun 27, 2024
Verified
Inventories are reported in the current assets section of the balance sheet immediately below receivables.
Current Assets
Assets that are expected to be converted into cash within one year or one business cycle.
Balance Sheet
A statement that provides a snapshot of a company's financial status, including assets, liabilities, and shareholders' equity at a defined point in time.
- Understand the impact of managing inventories on the financial reports, particularly the balance sheet and profit and loss statement.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
True
Explanation :
Inventories are classified as current assets and are reported immediately below receivables in the balance sheet.
Learning Objectives
- Understand the impact of managing inventories on the financial reports, particularly the balance sheet and profit and loss statement.
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