Office supplies may or may not be a current asset depending on their cost. A current Asset is any asset that will provide an economic benefit for or within one year. Office supplies are generally recorded under the current assets account until they are used. However, if their cost is deemed immaterial, then they may be directly recorded as an expense instead. The cost may be considered immaterial if it does not significantly impact any financial statements.
Are Office Supplies a Current Asset? FAQs
Office supplies are any items used by a business to complete its day-to-day operations, such as paper, pens, folders, and other materials needed for administrative tasks.
A current Asset is any asset that will provide an economic benefit for or within one year.
Generally speaking, yes. Office supplies are considered to be short-term assets on the balance sheet and will usually be classified as such.
Office supplies are generally recorded under the current assets account until they are used. However, if their cost is deemed immaterial, then they may be directly recorded as an expense instead.
The cost may be considered immaterial if it does not significantly impact any financial statements.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
