# Inventory

*Accounting & Reporting — Finicade finance glossary*

Inventory is goods held for sale plus the raw materials and work in progress behind them. It is the least liquid current asset and the one most likely to be worth less than its carrying value — fashion, electronics and perishables can become unsellable while still on the balance sheet at cost. Inventory rising faster than sales is a classic precursor to a writedown.

**Also known as:** inventories

**Related terms:** [Inventory Turnover](https://finicade.com/glossary/inventory-turnover), [Cost of Goods Sold](https://finicade.com/glossary/cost-of-goods-sold), [LIFO vs FIFO](https://finicade.com/glossary/lifo-vs-fifo), [Working Capital](https://finicade.com/glossary/working-capital), [Impairment](https://finicade.com/glossary/impairment)

Source: https://finicade.com/glossary/inventory