Inventory Is Normally Classified in the Balance Sheet as A

question 50

Multiple Choice

Inventory is normally classified in the balance sheet as a:

• A) current liability.
• B) current asset.
• C) negative asset.
• D) non-current asset.

---

Definitions:

Promissory Estoppel

Promissory estoppel is a legal doctrine that can enforce a promise in the absence of a formal contract when a party has relied on that promise to their detriment.

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.

Preexisting Contract

A legal agreement that was created and became effective before the current discussion or issue.

Additional Consideration

Extra benefits or compensation provided to one party in a contract to modify or amend the original terms.