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inventory is group of answer choices reported under the classification of property, plant, and equipment on the balance sheet. generally valued at the price for which the goods can be sold. reported as a current asset on the balance sheet. often reported as a miscellaneous expense on the income statement.

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A company's ready-to-sell goods and products, as well as the raw materials used to make them, are referred to as inventory. There are three different inventory classifications: raw materials, work-in-progress, and finished goods.

What is comprised of the inventory?

  • All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory.
  • Example: Only the newspaper will be regarded as inventory if a newspaper vendor utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset.
  • When the product is sold, the inventory is a cost. When a consumer pays you for that item, it no longer falls under the "asset" column on your revenue statement but rather under "cost."
  • The balance sheet and the income statement are both impacted by an inventory write-down. Because write-downs are viewed as expenses, net income and tax obligations are decreased.
  • Thus, a decline in net income causes a decline in retained earnings, which in turn causes a decline in shareholder equity on the balance sheet.

To Learn more about inventory refer to :

https://brainly.com/question/25947903

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