Is inventory an asset?

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Mingle 0 Comments

First of all, is inventory included in the assets? In addition, do you know if inventory is considered a current or a non current asset and under what circumstances it can be both (if that’s applicable)?

1 Answer

score 0 · Answer 1 · 2012-12-02T21:04:50+00:00

Yes, Inventory is the stock that the company has purchased which has not been sold yet. Imagine that inventory is physical assets sitting at the warehouse. They are assets for the company and they are expected to be sold within twelve months. Therefore, inventory is a current asset.