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.
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