You own assets as an individual. Putting Assets to Work As a company begins operations, it owns some cash, raw materials, land, buildings, and equipment. This gets the company started. The raw material will be turned into finished products. The word inventory covers all these types of materials and products.
Inventory has value and can be sold.
That makes it an asset. The company uses its equipment to begin operations. Before it started, it had already identified potential customers who would buy its products and services. It makes and sells products and delivers services to those customers. The company buys materials, energy, and labor.