Items in inventory don't generate revenue until they're sold.

Name: Items in inventory don't generate revenue until they're sold.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

Inventory is considered an asset on a company's balance sheet, but it doesn't contribute to revenue until the items are sold to customers. Revenue is only recognized when goods or services are delivered or rendered to a customer, and the customer has the obligation to pay for them.

Items in Inventory Don't Generate Revenue Until They're Sold