Inventory is usually reported as a long-term asset in the balance sheet.Inventory is typically reported as a current asset because companies expect to convert it to cash in the near term.

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Inventory is usually reported as a current asset in the balance sheet because it is expected to be converted to cash within one year or less. Long-term assets are typically held for more than one year, such as property, plant, and equipment or investments.

Inventory Is Usually Reported as a Long-Term Asset in the Balance