A firm's __________ account is categorized as a current asset.
A. equipment
B. accounts payable
C. bonds payable
D. merchandise inventory
D
To determine which of the given options is categorized as a current asset, you need to understand the nature and classification of current assets. Current assets are assets that are expected to be used up or converted into cash within one year or the normal operating cycle of a business, whichever is longer.
Among the options provided, the most likely current asset account is merchandise inventory. Merchandise inventory represents the goods that a firm has purchased for the purpose of reselling them to customers. This account reflects the value of the firm's inventory at a given point in time and is expected to be sold within the next year or normal operating cycle.
Therefore, the correct answer is D. merchandise inventory.