significance of accounting for inventories
Not what you're looking for?
1. What is the significance of accounting for inventories? What "difference does it make" if the amounts reported are accurate or not?
Purchase this Solution
Solution Summary
This question involves the fundamentals of accounting
Solution Preview
Hi there,
<br>
<br>Accounting for inventory is very important, especially if the business is involved in the selling of physical goods. If the company does not report that they have any inventory on hand when they actually do so, they would be underreporting their assets. This could have significant consequences in instances where the company holds bank covenants and their bank loans are dependent on ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.