 Hello in this lecture we're going to define Inventory. According to fundamental accounting principles while 22nd edition the definition of Inventory is Good a company owns and expects to sell in normal operations. So we're talking about a good generally an asset. The difference between inventory and other types of assets is that the inventory is geared toward being sold in the future whereas other types of assets are assets because of course they're going to help us generate revenue in the future but they're not going to be doing that by the selling of those assets inventory of course is what we buy and then sell inventory could differ based on the type of company that we are in for example inventory could be a boat an asset could be a boat it could be a fixed asset it could be inventory it really depends on what we're using the boat for if we're buying and selling boats then of course we're talking about inventory if we're taking a boat and we're using it to ship goods and whatnot then it's still of course an asset but it's not inventory we can think of the same for a computer obviously if we have the computer it's an asset if we're using it for the business but if we're buying and selling the computers it is now inventory if we're talking about a forklift same thing for if we just have the forklifts and we're using it to help us generate revenue it's an asset if we buy and sell forklifts we're talking inventory