Financial and Management Accounting (MBA 5103)
Chapter 05 ACCOUNTING FOR CURRENT ASSETS: INVENTORY
Md. Mahabbat Hossain Faculty Member BIBM February 26, 2012
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INVENTORY BASICS • Balance sheet of merchandising and manufacturing companies – inventory is significant current asset
• Income statement – inventory is vital in determining results
• Gross profit – (net sales - cost of goods sold) • watched by management, owners, and others
February 26, 2012
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