Partly manufactured goods are treated in the balance sheet of a manufacturing company as

A.

Current assets

B.

Fixed assets

C.

Current liabilities

D.

Long term liabilities

Correct answer is A

Inventory means those current assets, which have been or will be converted into the final products of a company for sale in the near future. In other words, inventory represents finished goods or goods in different stages of production that a company keeps at its premises or at third-party locations with ownership interest retained until goods are sold. The three most important types of inventory are the raw materials, the work in progress (semi finished goods / partly manufactured goods)  and the finished goods.