Inventory

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.
Posted by Ken Pirok at 6/7/2008 12:16 AM
Categories: Balance Sheet, Inventory, Asset
 

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