Final answer:
Items not intended for resale are classified as non-inventory assets, including property, plant, and equipment, intangible assets, and supplies and prepaid expenses.
Step-by-step explanation:
From an accounting standpoint, items not intended for resale are classified as non-inventory assets. These are assets that a company holds for its own use or consumption, rather than for sale to customers. Non-inventory assets are recorded on the balance sheet and are typically depreciated over time to reflect their decrease in value.
Examples of non-inventory assets include:
- Property, Plant, and Equipment (PPE) - such as buildings, machinery, and vehicles that a company uses for its operations.
- Intangible Assets - such as patents, trademarks, and copyrights.
- Supplies and Prepaid Expenses - such as office supplies and prepaid rent or insurance.