The term inventory refers to the stockpile of the products a firm is offering for sale and the components that make up the product Inventory is included in current asset because it can be easily converted into cash.

Inventory is used to make finished goods which would be sold out in current year, so inventory is referred as current assets for company.

For example as explained in videos For Dominos Pizza Comp. Dough, Cheese, Vegetables, etc. are inventories which will be used to make pizza for current year itself, for next year company will buy new inventory.