scarlett123185
Answered

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Which statement about inventory is true?

A. It is not an important aspect of financial analysis for a trading company.

В.
It is a current liability for a business.

C. A company's inventory does not become obsolete.

D. A company expects to convert it into cash in the near future.

E. it is an income for the business

Sagot :

D is correct
Because is true

The true statement about inventory is that the company exchanges into cash in the upcoming future years.

Option D is the correct answer.

What is an inventory?

An inventory is the goods lying at the end of the accounting year which is reported as closing stock on the balance sheet.

Inventory is one of the short-term assets of the company as it converts it into cash within a year or less. It is reported in the balance sheet of the company at the closing of an accounting year. It is recognized under the current asset sub-head with the primary head as assets.

Therefore, the explanation given in Option D is best represented by the inventory.

Learn more about the inventory in the related link:

https://brainly.com/question/25947903

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