Answer:
The answer is B. balance sheet as a current asset
Explanation:
Finished goods inventory is a current asset and assets are reported under balance sheet.
Current asset like finished goods inventory is an inventory that will or should be sold within a year.
Inventory is not a non-current asset. Non-current asset has more than a year as life span e.g machinery, equipment etc.
Option C and D are wrong because inventories are neva reported on income statement.
Answer:
The correct answer is letter "B": balance sheet as a current asset.
Explanation:
Finished goods inventory includes all those goods that do not need any more manufacturing or goods that were purchased already finished -merchandise- but have not been sold yet. Finished goods on the Balance Sheet are considered current assets because it is expected they will be sold in less than 1 year.
