GENERAL KNOWLEDGE

Detailed explanation-1: -Inventory is known as being a company’s goods and products that can be sold. It is labeled as being the current asset on a company’s balance sheet. The intermediary between manufacturing and order fulfillment.

Detailed explanation-2: -As noted above, inventory is classified as a current asset on a company’s balance sheet, and it serves as a buffer between manufacturing and order fulfillment. When an inventory item is sold, its carrying cost transfers to the cost of goods sold (COGS) category on the income statement.

Detailed explanation-3: -It is, basically, what is available to serve customers and put products in their hands. In summary, stock is the supply of finished goods available for sale, and inventory includes both finished goods and components that create a finished product. In other words, all stock is inventory, but not all inventory is stock.

Detailed explanation-4: -Inventory refers to all the items, goods, merchandise, and materials held by a business for selling in the market to earn a profit. Example: If a newspaper vendor uses a vehicle to deliver newspapers to the customers, only the newspaper will be considered inventory. The vehicle will be treated as an asset.

Detailed explanation-5: -Inventory management refers to the process of ordering, storing, using, and selling a company’s inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing of such items.