Answer:
A) Inventory is reported as a current asset because it will be converted into cash within a year of the balance sheet date.
Explanation:
The total assets comprise of current assets, fixed assets, and the intangible assets
The current assets include cash, stock, account receivable, etc
Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.
And, the intangible assets include patents, copyrights, goodwill, etc.
The current assets are those assets which are converted into cash in less than one year
