Are Supplies a Current Asset?

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.