is merchandise inventory a current asset

is merchandise inventory a current asset refers to inventory that is intended for sale in the normal course of business, and yes, merchandise inventory is classified as a current asset on the balance sheet. This means that it is expected to be converted into cash or used up within one year or one operating cycle, whichever is longer. For retail businesses, merchandise inventory is a significant part of their current assets, as it represents the products that will be sold to customers for revenue generation.