An entity that trades as an antique dealer buys inventory at a cost of N$30 000 on 1 July 20X0. Inventory costing N$10 000 is expected to be sold during 20X1 and inventory costing N$20 000 is expected to be sold during 20X2.
None of this inventory is sold during the year ended 31 December 20X0.
How will this inventory be classified on the statement of financial position at 31 December 20X0?
(Choose only one correct option)

Question

An entity that trades as an antique dealer buys inventory at a cost of N$30 000 on 1 July 20X0. Inventory costing N$10 000 is expected to be sold during 20X1 and inventory costing N$20 000 is expected to be sold during 20X2.

None of this inventory is sold during the year ended 31 December 20X0.

How will this inventory be classified on the statement of financial position at 31 December 20X0?

(Choose only one correct option)

Accepted Answer

N$30 000 as a current asset

Answer

N$30 000 as a non-current asset

Answer

N$10 000 as a current asset and N$20 000 as a non-current asset

Answer

N$20 000 as a current asset and N$10 000 as a non-current asset

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