Sunday, June 24, 2018


Inventory consists of goods that are held for sale.  “Inventory” is a current asset account listed on the balance sheet.  Inventory might consist of raw materials, work-in-progress, or finished goods.

The quality of inventory is explored by financial analysts.  For example, raw materials and finished goods typically have more value in liquidation (and therefore as collateral) than work-in-progress.  Inventory that has become obsolete may also have decreased value.

No comments:

Post a Comment