Is inventory current asset?

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Archie 0 Comments

Do you know if all inventory is recorded as current asset? Are there any items that are included in the inventory (or in the stock) that are not considered as current assets?

1 Answer

score 0 · Answer 1 · 2012-12-02T21:52:54+00:00

Yes, inventory or the stock is a current asset. In other words, inventory is expected to be sold in the following twelve months. If a company has slow moving stock then an impairment review is necessary. In any case, all companies expect that they will sell their stock in the following twelve months.