Final answer:
Inventory is a tangible asset, not an intangible asset, and is considered a current asset expected to be sold within one operating cycle. It consists of goods ready for sale and changes in volume based on business conditions.
Step-by-step explanation:
The statement that inventory is an intangible asset held for sale in the normal course of business is false. Inventory refers to the goods that a business has produced but has not yet sold to consumers. These items are tangible assets, as they have a physical presence and can be seen and touched. They are held temporarily in warehouses and on shelves and are expected to be sold within one operating cycle.
This contrasts with intangible assets like intellectual property or goodwill, which do not have a physical form. The value of inventory can fluctuate, increasing when business conditions are worse than expected, leading to an accumulation of unsold goods, or decreasing when business conditions improve and inventory is sold more quickly.