Final answer:
Inventory is tangible property that is manufactured or distributed for sale, used or sold as part of a firm's everyday operations, and include items stored but not yet sold.
Step-by-step explanation:
Characteristics of inventory typically include tangible property that is:
- Sold as part of a firm's everyday operations
- Used in a firm's everyday operations
- Manufactured or distributed for sale to customers
Inventories refer to the goods a business has produced but has not yet sold. These items are stored in warehouses or on store shelves. Inventory levels may fluctuate based on the business's performance and changes in consumer demand.