Inventory: Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus, inventory is the biggest and the important source of income and profit for the business. Current Assets: It comprises of all the assets which gets converted into cash in less than a year. Example: inventory, other current assets, etcetera. To Identify: Inventory as a percentage of current assets.

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Chapter 5, Problem 14DQ

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Inventory: Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus, inventory is the biggest and the important source of income and profit for the business.

Current Assets: It comprises of all the assets which gets converted into cash in less than a year. Example: inventory, other current assets, etcetera.

To Identify: Inventory as a percentage of current assets.

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