Question

Merchandise inventory is Select one: a. None of the above b. Reported under the classification of Property, Plant and Equipment on the balance sheet c. Often reported as a miscellaneous expense on the income statement d. Reported as a current asset on the balance sheet e. Generally valued at the price for which the goods can be sold

Answer 1

Answer:

d. Reported as a current asset on the balance sheet

Explanation:

Merchant inventory refers to st finished goods available for sale at any given time. Merchant inventory is commonly referred to as inventory. It is recorded as a current asset in the balance sheet.

Merchant inventory is acquired through purchasing by retailers, wholesalers, and distributors to be sold to customers. Merchant inventory will specifically refer to the unsold goods at the end of a period. It is recorded at its acquisition cost. i.e., the cost which the trader paid to obtain the merchandise.