Is stock current asset?

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Greenwood10 0 Comments

Is stock part of the current or the non current assets? Is it possible that it can be a non current asset and under what circumstances?

1 Answer

score 0 · Answer 1 · 2012-12-02T22:37:08+00:00

Yes, stock is expected to be sold within one year so it is a current asset. If a company has stock and does not expect it to be realized within one year, then there is a risk that the stock might be impaired. In any case, the stock is a current asset.