Inventories Are Reported in the Current Assets Section of the Statement

question 37

True/False

Inventories are reported in the current assets section of the statement of financial position immediately before receivables.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, often intended to protect consumers from excessive prices.