oboloo Glossary

Inventory Account

oboloo Glossary

Inventory Account

Inventory Account is an asset account used to record the cost of goods that have been purchased but not yet sold. It is also known as a Stock Account and it tracks how much inventory remains in stock or on hand at any given time. By properly accounting for inventory, businesses are able to accurately report the total value of their assets and ensure that they remain profitable. Furthermore, inventory account helps businesses maintain customer satisfaction by ensuring that enough products are available when customers wish to purchase them.