94.6k views
0 votes
Inventory is tangible property that is held for sale in the normal course of business, but it can also be tangible property that is used for what?

User Dybzon
by
7.4k points

1 Answer

4 votes

Final answer:

Inventory can also be used for collectibles like paintings or jewelry, providing personal enjoyment and potential for investment return.

Step-by-step explanation:

Inventory is tangible property that is held for sale in the normal course of business. Aside from its primary role in commerce, inventory can also be tangible property that is used for purposes such as services or as a potential investment with the hope of a higher selling price in the future. Examples include collectibles such as paintings, fine wine, jewelry, antiques, or even baseball cards.

While collectibles may provide personal enjoyment and have the potential to be sold for a profit in the future, it is important to recognize that the returns from such investments can be unpredictable. However, the shift in the number of inventories sitting on shelves typically indicates the performance of the business, where a decline often signals better-than-expected business and a rise indicates a business that is worse than expected.

User Michael Pell
by
7.4k points