Inventories refer to goods that have been produced and sold in the same year. goods which have been presold before they are produced. goods that have been planned but not yet produced. goods that have been produced but not yet sold.

Inventories refer to goods that have been produced but not yet sold.

Explanation:

Inventories or Stock refer to goods that have been produced but not yet sold. It also means goods that have been purchased by the company with the intention of selling them for profit. Once goods are sold, they are erased from the inventory records and transferred to the sales accounts, and only 'goods available for sale' will primarily classify as inventory.

Furthermore, there is also 'raw material inventory' which is the goods that have been bought to be used in production.