What is the definition of inventory?

The definition of inventory is "goods and materials held for resale." Inventory represents items that a business acquires with the intention of selling them to customers. These items can include finished goods ready for sale, work in progress, and raw materials that have yet to be transformed into finished products. The primary purpose of holding inventory is to meet customer demand and ensure that the business can fulfill orders promptly.

The other options focus on concepts that do not accurately capture the essence of inventory. For instance, resources utilized for production refer to the inputs or materials that are transformed into finished goods but do not specifically denote the goods held for sale. Similarly, assets that are not sold could describe a variety of assets, including property and equipment, but it doesn't specifically confine itself to goods meant for resale. Lastly, cash reserves set aside for emergencies pertain to liquidity management rather than to inventory, which is a physical count of goods available for sale. Therefore, the correct answer encapsulates the specific function and purpose of inventory within a business context.