Inventory Would Appear on a Balance Sheet as

question 50

Multiple Choice

Inventory would appear on a balance sheet as

• A) a current asset.
• B) part of property and equipment.
• C) a current liability.
• D) a long-term liability.
• E) either a current asset or a current liability.

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Definitions:

Past Consideration

A legal concept indicating that an act done before a contract is made is not valid consideration for the contract.

"The Answer"

Often used metaphorically to denote a solution or response that resolves a question or problem comprehensively.

Consideration

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

Illusory Promise

A situation in which a party appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration.