ECONOMICS

Detailed explanation-1: -Is Inventory Always a Current Asset? Since there’s reasonable expectation that the inventory will be used up or sold off for cash within the next twelve months or within the accounting period, it is always listed as a current asset in the balance sheet.

Detailed explanation-2: -The short answer is yes, inventory is a current asset because it can be converted into cash within one year.

Detailed explanation-3: -In accounting, inventory is considered a current asset because a company typically plans to sell the finished products within a year.

Detailed explanation-4: -From an accounting standpoint, inventories are assets as long as there’s an expectation that they’ll be liquidated into cash or cash equivalents within a year or the next accounting period.