If you drink a large (250ml) glass of wine, your body takes about three hours to break down the alcohol. If you drink one pint of beer, your body takes about two hours to break it down. One pint of strong lager is equivalent to three units, so this will take longer.
General Asset Differences. As a current asset, inventory is different from long-term assets in that it is typically acquired and sold within twelve months. Accounts receivable, cash and other marketable securities are other examples of current assets.
For example, inventory is an asset. Expenses are the cost of bringing in revenues. They were needed to bring in the revenues and profits that you reported this year. Expenses appear on the income statement. For example, just as inventory is an asset, âcost of goods soldâ is an expense. This is the cost of inventory that was sold during the year. The difference is really one of timing. An asset is expected to bring in a benefit sometime in the future. When the benefit comes in, then the asset becomes an expense. As it is sold, inventory is moved out of the inventory account on the balance sheet, and into the cost of goods sold account on the balance sheet.