Question

Complete the following statement. Merchandise inventory that is still available for sale is considered a(n) ________ (asset/expense/revenue) and is reported on the ____________ (balance sheet/income statement) and merchandise that is sold during the period is considered a(n) _______ (asset/expense/liability) and reported on the ____________ (balance sheet/income statement). Multiple choice question. expense -> income statement -> asset -> balance sheet expense -> balance sheet -> asset -> income statement asset -> income statement -> expense -> balance sheet asset -> balance sheet -> expense -> income statement

Answer 1

Answer:

asset -> balance sheet -> expense -> income statement

Explanation:

The merchandise inventory that still available for the sale purpose should be treated as the asset and the same should be reported on the balance sheet. And, the merchandise that is sold so it is treated as an expense and the same should be reported on the income statement

Therefore the above answer should be considered