Inventory is generally a major item on the balance sheet, and it is often the largest item making up the accounts included in working capital. Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc.Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. Inventory is generally a major item on the balance sheet, and it is often the largest item making up the accounts included in working capital