Question

________ is reported as a current asset on balance sheet. a. Cost of goods sold b. Accounts payable c. Operating income d. Merchandise inventory

Answer 1

d. Merchandise inventory

Step-by-step explanation:

The current assets comprise cash, inventory, account receivable, prepaid insurance, short term investment, etc

This current asset are presented on the asset side of the balance sheet

Whereas the cost of good sold are presented on the income statement, the account payable are displayed on the liabilities side of the balance sheet, and the operating income is also presented on the income statement