Final answer:
Inventories refer to assets held by a business for resale or goods produced for sale by manufacturers, and their levels fluctuate with business performance.
Step-by-step explanation:
The term used to describe the assets that a retail or wholesale company acquires for resale, or the goods that manufacturers produce for sale, is inventories. An inventory is an asset item of likely economic benefit to a business, consisting of goods ready to be sold. Inventory management is vital for businesses as it directly affects their profitability and customer satisfaction. The status of inventory can change based on the business climate; for instance, inventory levels tend to decline when businesses perform better than expected due to higher sales, or rise when businesses perform worse than expected, resulting in surplus stock.