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  • Definition of Inventories
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    Definition of Inventories

    Miscellanea   /   by admin   /   July 04, 2021

    By Victoria Bembibre, on Feb. 2009

    Exchange realtyInventories are goods intended for purchase and sale that have the purpose to produce some kind of gain.

    Exchange goods are known as those values belonging to the financial asset in a institution, whose ability to be used in purchase and sale operations allows the entity to obtain value in exchange. A typical case of exchange good is the goods that a company produces.

    For a given entity, the inventories must be tangible assets that it owns to be traded during the activity of the same. Exchange goods can be goods that the company produces, but they are also others that are acquired precisely for resale. An exchange good can be found in the middle of the process of production, in initial or final stages, and can be located in situ or in transit.

    In a company, every asset is a resource and a potential exchange good to the extent that it has economic utility and a value or exchange or use. The first is classified as net worth of realization, Meanwhile he second

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    is the economic use value. A given exchange good is made up of the sale value less the expenses of this operation.

    Every asset constitutes an economic resource for the company, that is, it has an economic utility whether it is money, it can be converted into it, it is goods that are expected to be sold or used; technically they are said to have an exchange and / or use value.

    An example is merchandise that is planned for resale, as they have a high exchange value, but no use. Instead, a piece of furniture or similar has both exchange and use value.

    A good that loses all its value and exchange and use is no longer an asset of the company.

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