Question

‘Loose Tools’ appear in the company’s Balance Sheet under the head/sub-head ______.

Options

• Inventory

• Non-Current Assets

• Other Current Assets

• Stores and Spare Parts

Answer 1

‘Loose Tools’ appear in the company’s Balance Sheet under the head/sub-head stores and spare parts.

Explanation:

Loose Tools are small, low-cost items used in daily operations (like hammers, wrenches, etc.). On the Balance Sheet, they are shown under:

Current Assets → Inventories → Stores and Spares

They are treated as consumables and gradually written off as they are used.