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