Select the sub-head under which loose tools will be shown in the balance sheet of a company.

Inventories

Loose tools are shown under the Inventories subhead in the Current Assets section of a company's balance sheet. Inventories are assets that are held for sale in the ordinary course of business, or in the process of production or manufacture for such sale, or are materials and supplies to be consumed in the production process or rendering of services. Loose tools are considered to be inventories because they are used in the production process and are expected to be consumed within one year.