Is merchandise inventory an asset?

Answer The merchandise a business holds in inventory is an asset because it is likely to provide future economic benefit. Accounting and finance defines inventory as a current asset. This inventory repres... Read More »

Top Q&A For: Is merchandise inventory an asset

What kind of account is merchandise inventory?

Merchandise inventory accounts record the value of a merchandising company's inventory. This account is considered an asset as well as a current account. It is an estimate if the company uses the p... Read More »

Asset Inventory Procedures?

An asset is an economic resource that a firm intends to use in manufacturing activities or operating processes in the short and long terms. Inventories are short-term assets, meaning the firm inten... Read More »

Asset Inventory Definition?

A company's inventory levels are important indicators of economic robustness. Senior management often review corporate inventory amounts to forecast future business trends and performance ratios, s... Read More »

Is inventory an asset or a liability?

On One Hand: Accounted for as an AssetTechnically inventory is accounted for as a current asset. However, there needs to be a contra account to allow for spoilage and/or shrinkage that may occur .... Read More »