Multiple Choice Question

Complete the following statement. Merchandise inventory that is still available for sale is considered a$($n$)q,($asset$/$expense$/$revenue$)$ and is reported on the

$q,($balance sheet$/$income statement$)$ and merchandise that is sold during the period is considered a$($n$)q,($asset$/$expense$/$liability$)$ and reported on the $($balance sheet$/$income statement$).$

asset $->$ balance sheet $->$ expense $->$ income statement

asset $->$ income statement $->$ expense $->$ balance sheet

expense $->$ income statement $->$ asset $->$ balance sheet

expense $->$ balance sheet $->$ asset $->$ income statement