Urgent Question to Accounting people... please helppppp?

Question

1) Is stock purcahse a expense or inventory.

2) Does stock purchase appears in Balance sheet or only in income statment.

Answer 1

Purchase of stock goes first into inventory. If it remains unsold at balance sheet date, it goes into the balance sheet under current assets. If it's sold, it goes into the income statement as part of cost of goods sold.

Answer 2

1. inventory

2. balance sheet