Inventory - What is inventory and example?

Q: What is inventory and example?

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.

Answer

Everything that a company has on hand that it plans to sell in order to make a profit is called inventory. The only item that would be considered inventory for a newspaper vendor whose vehicle is used to distribute newspapers to clients would be the newspapers themselves. We will consider the car an asset.

Inventory - What is inventory and example?

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