1. A detailed list of assets; esp., an executor’s or administrator’s detailed list of the probate-estate assets (make an inventory of the estate). • The term also sometimes denotes a divorcing spouse’s detailed list of all his or her marital and separate assets and liabilities.
— Also termed inventory and appraisement. See PROBATE ESTATE; ACCOUNTING. [Cases: Executors and Administrators 62–73. C.J.S. Executors and Administrators §§ 152–162.]
2. Accounting. The portion of a financial statement reflecting the value of a business’s raw materials, works-in-progress, and finished products (the company’s reported inventory was suspiciously low).
3. Raw materials or goods in stock (the dealership held a sale to clear out its October inventory).
4. Bankruptcy. Personal property leased or furnished, held for sale or lease, or to be furnished under a contract for service; raw materials, work in process, or materials used or consumed in a business, including farm products such as crops or livestock (the debtor was found to have inventory that was valued at $300,000). — inventory, vb.
“Section 547 itself defines ‘inventory’ and ‘receivable.’ Do not use the U.C.C. definitions of these terms, or the definitions of them learned in business law classes. It is especially important to note that, for purposes of section 547, ‘inventory’ includes ‘farm products such as crops or livestock’ ….” David G. Epstein et al., Bankruptcy § 6-35, at 351 (1993).
