A company has excess finished goods inventory that it does not expect to realize within the company’s operating cycle of fifteen months. It shall be classified as___

Current assets

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Current liabilities

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Non current assets

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None of these

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Solution

The correct option is A
Current assets

Since such finished goods inventory is held primarily for the purpose of being traded, the same should be classified as “current”.

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A company has excess finished goods inventory that it does not expect to realize within the company’s operating cycle of fifteen months. It shall be classified as___

The correct option is A Current assets Since such finished goods inventory is held primarily for the purpose of being traded, the same should be classified as “current”.

The correct option is A
Current assets

Since such finished goods inventory is held primarily for the purpose of being traded, the same should be classified as “current”.