Are Supplies a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 03, 2023

Office supplies may or may not be considered a current asset depending on their cost. Generally, supplies are recorded as a current asset on a company’s balance sheet until they are used. At that point they would be transferred to the expense account on the income statement. However, companies may record the cost of supplies immediately as an expense if their cost is low enough to be considered immaterial; that is, if the cost was low enough that it would not impact their financial statements and would not reasonably mislead investors.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.