Finished goods inventory is reported on the a. balance sheet as a long-term asset b. balance sheet as a current asset c. income statement as revenue d. income statement as a period cost g

The answer is B. balance sheet as a current asset

Explanation:

Finished goods inventory is a current asset and assets are reported under balance sheet.

Current asset like finished goods inventory is an inventory that will or should be sold within a year.

Inventory is not a non-current asset. Non-current asset has more than a year as life span e. g machinery, equipment etc.

Option C and D are wrong because inventories are neva reported on income statement.

The correct answer is letter "B": balance sheet as a current asset.

Explanation:

Finished goods inventory includes all those goods that do not need any more manufacturing or goods that were purchased already finished - merchandise - but have not been sold yet. Finished goods on the Balance Sheet are considered current assets because it is expected they will be sold in less than 1 year.