Partly manufactured goods are treated in the balance sheet of a manufacturing company as?

A. Current assets
B. Fixed assets
C. Current liabilities
D. Long term liabilities

Correct Answer: Option A

A. Current assets

Explanation

Inventory means those current assets, which have been or will be converted into the final products of a company for sale in the near future. In other words, inventory represents finished goods or goods in different stages of production that a company keeps at its premises or at third-party locations with ownership interest retained until goods are sold. The three most important types of inventory are the raw materials, the work in progress (semi finished goods / partly manufactured goods) and the finished goods.