Is Inventory A Current Asset. Inventory is the asset held for sale in normal routine operations; Inventory is treated as a current asset because the organization intends to sell them within one accounting period or 12 months from the date it is recorded in the balance sheet.
Is inventory a current asset?is inventory a current asset is one of the most commonly confused types of current assets. This is because they can't be classified as fixed assets since they are expected to be converted into money within a year. Inventory is reported as a current asset as the business intends to sell them within the next accounting period or within twelve months from the day it’s listed in the balance sheet.
Financial basic concepts Dynamics AX Training
In financial accounting, inventory is categorised as a current asset and operating asset as every business expects to encash it within its fiscal year. The short answer is inventory is almost always a current asset. They’re devoid of any robust tech that closes the loop on repair, maintenance, and positioning products for market. This is because they can't be classified as fixed assets since they are expected to be converted into money within a year.
