When a classified balance sheet is prepared, merchandise inventory is: Not reported as a current asset because it is not sufficiently liquid.

When a classified balance sheet is prepared, merchandise inventory is:

Not reported as a current asset because it is not sufficiently liquid.

Usually listed after prepaid expenses according to its nearness to liquidity.

Reported as a current asset.

Usually reported before accounts receivable according to its nearness to liquidity.

Reported as a current liability.

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