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If we have a business of selling cars,then how we shall treat car in our balance sheet. 1)Inventory 2)Non current Asset

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Question ajoutée par Asad zaman , Audit/Finance , Rafaqat Baber and co
Date de publication: 2014/04/17
Rehan Qureshi
par Rehan Qureshi , Financial Consultant , Self Employeed

my suggestion is to treat them as Inventory 

Ahmad Alhusainy
par Ahmad Alhusainy , Customer Service , National Bank Of Kuwait - Nbk

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.

Mukkaram Siddique
par Mukkaram Siddique , Finance, Management & Stocks , Amazon Foods Saudi Arabia

Inventory,

Because now its normal course of the business.

Muhammad Ahsan
par Muhammad Ahsan , General Accountant , Emirates Hospitals Group

A. inventory however if any car is held of admisnistration purpose then it will have to be treated for non current asset.

Ed Mark Rustico
par Ed Mark Rustico , Independent Accounting Practitioner , N/A

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. 

Mujtaba Hussain
par Mujtaba Hussain , Accounts officer , Miraj Entertaiments

1) Inventory

Mohammed Alsatrawi
par Mohammed Alsatrawi , Treasury Manager , Al Yusr Industrial Contracting Co

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.

Jed Adtogan
par Jed Adtogan , Storekeeper , Department of Education

The business is engaged in selling cars, so therefore these cars should be treated as Inventory.

Menerva Melad
par Menerva Melad , Account Executive, Key Accounts , Graphic Home Company

inventory

wail salih
par wail salih , acountant , daleel almadeen

nventory as selling

Ilham Mohammed
par Ilham Mohammed , Senior Accountant , gulf center for foodstuff

Inventory under Current Assets ...

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