ch09 Inventories 财务会计英文版课件.pptVIP

Inventory is a significant asset and for many companies the largest asset. Inventory is central to the main activity of merchandising and manufacturing companies. Mistakes in determining inventory cost can cause critical errors in financial statements. Inventory must be protected from external risks ( such as fire and theft) and internal fraud by employees. overstated understated overstated overstated Inventory Costing Methods $ 3,800 2,700 4,650 3,920 Total $15,520 $15,472 $15,070 Metro-ArtsBalance SheetDecember 31, 2007 Assets Current assets: Cash $