Inventory is reported as a long-term asset on the balance sheet.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production.

Long-Term Asset

A resource that is expected to provide economic benefits to a company for more than one fiscal year.

Balance Sheet

A financial overview presenting the resources, obligations, and equity of shareholders of a company at a specific point in time.

Comprehend the fundamental principles of accounting for various inventory systems.

Verified Answer

Final Answer :

False

Explanation :

Inventory is typically reported as a current asset on the balance sheet, not a long-term asset.

Learning Objectives

Comprehend the fundamental principles of accounting for various inventory systems.