BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Assets whose value is recorded in the Current Assets account are considered current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Detailed explanation-2: -The short answer is yes, inventory is a current asset because it can be converted into cash within one year. Other examples of current assets include cash, cash equivalents, marketable securities, accounts receivable, pre-paid liabilities, and other liquid assets.

Detailed explanation-3: -Merchandise inventory is an asset account. Merchandise inventory is reported as a current asset on a retailer’s balance sheet. A current asset is one that will provide an economic benefit during a given accounting period, typically a year.

Detailed explanation-4: -Understanding Cash and Cash Equivalents (CCE) If a company has cash or cash equivalents, the aggregate of these assets is always shown on the top line of the balance sheet. This is because cash and cash equivalents are current assets, meaning they’re the most liquid of short-term assets.

Detailed explanation-5: -Inventory is reported as a current asset as the business intends to sell them within the next accounting period or within twelve months from the day it’s listed in the balance sheet. Current assets are balance sheet items that are either cash, cash equivalent or can be converted into cash within one year.