_______ is reported as an asset on the balance sheet.\npurchases\ncost of goods sold\ninventory
_______ is reported as an asset on the balance sheet.\npurchases\ncost of goods sold\ninventory
Answer
Answer:
C. Inventory
Brief Explanations:
- Purchases: Represents the cost of acquiring goods for resale, and is part of the calculation for inventory or cost of goods sold, not directly an asset on the balance sheet.
- Cost of Goods Sold (COGS): Is an expense on the income statement, representing the cost of goods that have been sold during a period, not an asset.
- Inventory: Consists of goods held for sale (or in the process of production for sale) and is a current asset reported on the balance sheet as it represents a resource owned by the company with future economic benefit.