Is Merchandise Inventory a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

Yes, merchandise as inventory is a current asset. A current asset is any asset that will provide an economic benefit for or within one year. Inventory production is typically closely correlated with demand, so inventory usually sells within one year of being produced. Therefore, inventory/merchandise is a current asset.

Is Merchandise Inventory a Current Asset FAQs

Is merchandise inventory a current asset?

Yes, merchandise as inventory is a current asset.

What is a current asset?

A current asset is any asset that will provide an economic benefit for or within one year.

Why would inventory be considered a current asset?

Inventory production is typically closely correlated with demand, so inventory usually sells within one year of being produced.

Is merchandise a current asset?

Because inventory production is typically closely correlated with demand, so inventory usually sells within one year of being produced. Therefore, inventory/merchandise is a current asset.

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.