Question

What section of the financial statement does this inventory appear?

What section of the financial statement does this inventory appear?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Inventory or Changes in inventory may appear at two places in financial statements. The same is discussed below:-

Inventory is an aset and the same should be reported under the assets side of the balance sheet.

Again, inventory is held for short term purpose (less than a year) with a view to sell or convert the unfinished inventory into marketable product and sell the same. Hence, inventory should be reported under 'Current Assets' in the assets side of the balance sheet, since inventory is held with a short term view and the same inventory is not permanently invested in business.

Also, if we have any changes in inventory (increase/decrease in inventory as compared to last statement), the same is taken into account in the calculation of cost of goods sold (part of income statement).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In what section of the statement of cash flows should the following items appear? Receipt of...
In what section of the statement of cash flows should the following items appear? Receipt of dividends Payment of dividends Interest Revenue Sale of PP&E Sale of Common Stock Loan cash to another business Exchange of PP&E for common stock Interest expense
The current assets section of the statement of financial position should include Select one: a. goodwill....
The current assets section of the statement of financial position should include Select one: a. goodwill. b. machinery. c. inventory. d. patents.
Which financial statement shows inventory?
Which financial statement shows inventory?
What does auditing do to an entity's financial statement?
What does auditing do to an entity's financial statement?
Does the cost of equity appear on the income statement? Why does equity have a cost...
Does the cost of equity appear on the income statement? Why does equity have a cost when the company is not required to pay dividends to common stockholders?
1. Total owner’s equity can be found in which section of a cash flow statement prepared...
1. Total owner’s equity can be found in which section of a cash flow statement prepared using the direct method? The financing activity section The operating activity section Total owner’s equity does not appear on a cash flow statement The asset activity section 2. Which of the following cannot be determined from a summary cash flow statement? Change in cash balance Types of cash Sources of cash Uses of cash
Here is a list of financial statement accounts. Identify whether the listed accounts appear on the...
Here is a list of financial statement accounts. Identify whether the listed accounts appear on the balance sheet (B/S)or the income statement (I/S), and the nature of the account the using letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. Accounts B/S or I/S or N/A A, L, SE, R, E or N/A Amortization expense Common stock Accounts receivable Dividends payable Sales revenue Inventory Wages payable Equipment...
accrued income,petty cash,loan,motor expenses which one is not appear in statement of financial position
accrued income,petty cash,loan,motor expenses which one is not appear in statement of financial position
For each of the following, indicate the financial statement in which the item would appear -...
For each of the following, indicate the financial statement in which the item would appear - IS for Income Statement, SOE for Statement of Owner's Equity, and BS for Balance Sheet: 1) Cash 2) Accounts Receivable 3) Accounts Payable 4) Beginning Capital 5) Ending Capital 6) Drawing 7) Rent 8) Wages 9) Advertising 10) Electricity 11) Service Fees 12) Equipment 13) Furniture 14) Building
indicate which of the following items should appear in the financial statement of a hotel and...
indicate which of the following items should appear in the financial statement of a hotel and where they would appear. a. A $100,000 lawsuit pending against the hotel that the hotel's attorney believes the hotel will probably lose. b. FICA taxes payable. c. Estimated property taxes. d. A commitment to pay a certain entertainer $30,000 if he performs at the hotel in six months. e. Estimated income taxes. f. The guarantee of $250,000 worth of a subsidiary's debt.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT