economy

definition of inventories

Stock assets are goods intended for purchase and sale that have the purpose of producing some type of profit.

Stock assets are known as those securities belonging to the financial asset in an institution, whose ability to be used in purchase-sale operations allows the entity to obtain value in exchange. A typical case of exchange good is the goods that a company produces.

For a given entity, the inventories must be tangible assets that it owns to be marketed during the activity of the same. Exchange goods can be goods that the company produces, but they are also others that are acquired precisely for resale. An exchange good can be found in the middle of the production process, in initial or final stages, and can be located on-site or in transit.

In a company, every asset is a resource and a potential good for exchange insofar as it has an economic utility and has a value or exchange or use. The first is classified as the net realizable value, while the second is the economic use value. A given exchange good is made up of the sale value less the expenses of this operation.

Every asset constitutes an economic resource for the company, that is, it has an economic utility whether it is money, it can be converted into it, it is goods that are expected to be sold or used; technically they are said to have an exchange and / or use value.

An example is merchandise that is planned for resale, as it has a high exchange value, but no use. On the other hand, a piece of furniture or the like has both exchange and use value.

A good that loses all its value and exchange and use is no longer an asset of the company.

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