Accounting for Inventories

Opening Inventory

Definition: Businesses may inventory of unsold goods at the beginning of the period called opening inventory. Normally, an assumption is made that this inventory is…
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Closing Inventory

Definition: This is very unlikely that a business sells all the goods that it purchased during the current period. Therefor cost of purchases is not…
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Closing of Incomes and Expenses

At the end of an accounting period businesses close  the nominal accounts (accounts for all incomes and expenses) by transferring their balances to the income…
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Inventory of Goods

Inventory of goods, for trading businesses, holds a key place in accounting analysis as it is mainly responsible for generating profits which is one of…
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