BUS 251 Chapter Notes - Chapter 7: Income Statement, Aadhaar, Gross Margin

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Wing Him Yeung

Document Summary

Any item purchased by a company for o o. Use in manufacture of items to be sold to customers. Meet the recognition criteria for an asset and is recorded as in the accounting system. If the company has no intention to sell the item to customers, then it is not considered as inventory. At the time of purchase, inventory is recorded at its cost o. Contain all the laid-down costs, which are costs that must be incurred in order to bring the inventory to the locations and conditions that can be sold to customers. The relationship between the beginning balance and ending balance of inventory can be illustrated in the following equation. In a subsequent measurements, inventory is valued at the lower of cost or net realizable value (nrv) on the balance sheet. Nrv =estimated selling price of the inventory the costs necessary sellthe inventory o o.