Question

Merchandise inventory is found on the balance sheet as a a. current asset. b. long-term asset. c. long-term liability. d. current liability.

Answer 1

Answer:

a. current asset

Explanation:

The merchandise inventory are the goods the business sales as their main operation. They are expected to be ready to sale therefore, ready to be converted to cash within the period, therefore will be current assets.

Unless the company do an specific mention and a certain amount of goods that will expected to be sold in a period of time greater than a year, all merchandise inventory will be current. These specific units will be considered non-current as their are expecteed to be converted to cash i na period greater than 1 year.