Work in Progress - WIP

What Does Work in Progress - WIP Mean?
Work that has not been completed but has already incurred a capital investment from the company.

Investopedia explains Work in Progress - WIP
This is usually recorded as an asset on the balance sheet. Work in progress indicates any good that is not considered to be a final product, but must still be accounted for because funds have been invested toward its production.

Related Terms

Asset
Balance Sheet
Working Capital
More Related Terms

Related Links

Reading The Balance Sheet - Learn about the components of the statement of financial position and how they relate to each other.
Introduction To Fundamental Analysis - Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.

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