أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
my suggestion is to treat them as Inventory
inventory, and inventory are current asset, non current asset would take over a year or two a very long period of time to be able to sell.
Inventory,
Because now its normal course of the business.
A. inventory however if any car is held of admisnistration purpose then it will have to be treated for non current asset.
It depends on the purpose for which the car is held. If the car is held for sale, then it becomes an invetory which is a current asset. This seems to be the obvious answer since it was mentioned that the company is engage in selling cars. On one end, if the car is held for the purpose of "delivery" or if used in operations, then it will be classified as part of property, plant and equipment, which is subject to depreciation, using cost method.
1) Inventory
Inventory for sure.
The purpose of having these cars is for selling, however, if the company's employees are giving cars as a transporation allowance, these cars will be treated as assets.
The business is engaged in selling cars, so therefore these cars should be treated as Inventory.
inventory
nventory as selling
Inventory under Current Assets ...
