Answer:
(C) balance sheet as a current asset
Explanation:
Finished goods inventory are considered part of the assets of a company, and due to their short life span, are recognized as current assets. Thus, they are recognized on the balance sheet as current assets.
Option A is incorrect because finished goods inventory are short-term assets and are usually disposed off within a year. Option B is incorrect as only sold finished goods make up revenue, not those held as inventory. Option D is incorrect because finished goods inventory are not period cost. However, the cost of purchasing or manufacturing them are considered as cost.
