Multiple choice

The item closing inventory is shown in the balance-sheet under

  1. Fixed Assets

  2. Current Assets

  3. Current Liabilities

  4. Miscellaneous Expenditure
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Closing inventory is classified as a current asset because it's expected to be converted into cash or consumed within the normal operating cycle (usually 12 months). Current assets include items like cash, debtors, and inventory that provide liquidity. Fixed assets are long-term assets used in operations.

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