Question

Inventory should be reported as follows except a.as a long-term asset on the balance sheet. b.as a current asset on the balance sheet. c.according to the chosen cost flow assumption. d.at lower of cost or market.

Answer 1

Answer:

a.as a long-term asset on the balance sheet

Explanation:

Total assets include current assets, fixed assets, and intangible assets Current assets involve cash, stock, receivable account, etc. Fixed assets comprise plant & machinery, property, facilities, furniture & equipment, etc.

However, the intangible assets are trademarks, copyrights, goodwill and so on.

So, the inventory cannot be reported as a long term asset