what is the different between liquid asset and tangible asset?
Inventory is the largest and most important asset owned by merchandising business. Inventory has a direct impact on reporting the solvency of the company in the balance sheet, which determine cost of goods sold alone all benefits and expenses Company using periodic inventory procedure takes a physical inventory to determine the cost of goods sold by adding the beginning inventory to the net cost of purchases and deducting inventory. In each accounting period appropriate expenses must be matched with the revenues of that period to determine the net income Applied to inventory, matching and how much of the cost of good available for sale during the period should be deducted from current revenue and how much should be allocated to goods on hand and thus carried forward as an asset Relationship involves three times First properly valued its ending inventory Second misstatement occurs because the ending inventory amount of the current is the beginning inventory amount for the next year Third an error in one periods ending inventory automatically cause an error in net income in the opposite direction in next period after 2 years the error washes out and assets and retained earnings are properly stated.
Exhibit 45, is the wrong year title. And then some figures are not match the references . For example ,figure 290,000 is not ending inventory. If its ' a ending inventory, it deduct from beginning inventory + Purchases .So most of the figures are not match references title. After that it omits the beginning retained earning figure (170,000) From year 2009 December 31. Please check for this exhibit.
There are quite a number of accounting dpcuments that are use to measure and repport merchandise inventory among which include the Date sheet that is use in the stores by store keeper clearing showing the inventory available and how they are being use (used) and also the balance sheet is used among a few to mention
this course is very fruitful to me
I am very focus in this course.
what's merchantdise inventory?
I cannot see anything
Recording inventory @ cost