The Amount Recognized on the Income Statement as the Cost

question 119

Short Answer

The amount recognized on the Income Statement as the cost of inventory will be recognized as a(n) _________________________.

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Definitions:

Current Asset

An asset on the company's balance sheet that is expected to be converted into cash within one year.

Long-term Asset

An asset that is not expected to be converted to cash or used up within one year of the balance sheet date.

Equipment

Tools, machinery, or apparatus designed for a specific operation or purpose.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols.