Hello,

I am having trouble with Accounting homework. I hope you can help me out with the correct answer.

Sorry to user "Pready," but I can't find the other threat where he answered this question already. I am re-posting this and hoping he can or someone else, for an answer.


The question is: "Materials & supplies" are classified under which category in the classified balanced sheet?

Current assets Current liabilities
Long-term investments Long-term liabilities
Property, plant, and equipment Common stock
Intangible assets Retained earnings

For homework assignments, we get 3 out of 3 chances; however, I already used up 2 of my chances. I think I got the answer wrong by classifying "materials &supplies" as a "current asset" and the second time I put an answer, I can't remember which answer I selected.

Materials and Supplies should be classified as a Current Asset on a Balance Sheet if you are going to use them within one year or one accounting cycle.