In the financial statements of an entity under which

Solution

Inventory is a type of current asset. Current assets are assets that can be easily converted into cash or used up within a year. Inventory is a company's stock of raw materials, work in progress, and finished goods that are intended for sale. The value of inventory is reported on the balance sheet as a current asset. It is typically reported at the lower of cost or market value. This means that if the market value of the inventory falls below its cost, the inventory will be written down to the market value.