Respuesta :
Answer:
Asset
Balance Sheet
Expense
Income statement
Explanation:
An asset is defined as a property of company, from which future economic benefits will arise, as for inventory in hand, the inventory can be sold in future and then future benefits will arise from such sale. Thus, it is an asset and assets are reported in balance sheet.
The expenses are the cost associated to earn the revenue, as when any inventory is sold the inventory is recorded as an expense called cost of goods sold, which is recorded in income statement.
The correct statements regarding the merchandise inventories are as follows,
Merchandise inventory that is still available for sale is considered an asset and is reported on the balance sheet, and merchandise that is sold during the period is considered an expense and reported on the income statement.
So, the correct set of options that match the statements quoted above are 1. A and A and 2. B and B.
What is merchandise inventory?
A merchandise inventory is that part of the total inventories of an organization which are available for sale during such specific financial period.
The effect of merchandise inventory which are available for sale are considered as forming part of balance sheet and mentioned under the assets' column.
Whereas, the merchandise which has already been sold at the end of the organization is considered as an expense for the organization for such financial year.
The effect of the sales of the merchandise during the financial year is recorded under the income statement under the expenditure column of such financial period.
Hence, the correct options are 1. A and A and 2. B and B the statements as aforementioned are correct about the merchandise inventories of an organization.
Learn more about merchandise inventory here:
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