Accounting for IGCSE & O level - Final Statements (Section 8 - No. 16)
If a company has a large inventory, how is that reflected on the balance sheet?
It is reported as a liability.
It is reported as an expense.
It is reported as an asset.
It is reported as equity.
Explication
Inventory is listed as an asset since it's a resource the company owns and plans to sell.