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This post discusses why inventory valuation is important.

Why is inventory valuation important to the presentation of the balance sheet and the income statement?

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Basically, when we use inventory valuation, we're taking the steps that are needed to assign inventory a value. When we do so, we then transfer that value onto the balance sheet. This is significant because it shows the level of liquidity since inventory ...

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Why is inventory valuation important to the presentation of the balance sheet and the income statement?

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