QuickBooks Dictionary
Inventory
A detailed list of articles of property. In the true accounting sense, and for income tax purposes, it refers only to a list of articles comprising stock in trade--articles held for sale to customers in the regular course of a trade or business. The cost of goods sold during the year is determined by adding to the inventory at the begining of the year the purchases made during the year and subtracting from this sum the inventory at the close of the year.