" />
Inventory is the tangible goods held by a business for the production of goods and services.
Inventory can fall into three categories: raw materials, work-in-process (WIP), and finished
goods. Raw materials inventory represents items or commodities purchased by a firm to create
products and services. WIP inventory represents “partially completed goods, part or
subassemblies that are no longer part of the raw materials inventory and not yet finished
goods.” [3] The valuation of WIP should include the cost of direct material, direct labor, and
overhead put into the WIP inventory. Finished inventory represents products that are ready for
sale. Generally accepted accounting principles (GAAP) require that a business value its
inventory on either the cost price or the market price—whichever is lowest. This inherent
conservative approach to valuation is due to the desire to prevent the overestimation of
inventory during inflationary periods.
Total current assets are the summation of the aforementioned items and are defined as follows:
total current assets = cash + marketable securities + accounts receivable + prepaid expenses + inventory.
The next set of items in the asset section of the balance sheet is long-term assets. Long-
term assets are those assets that will not be turned into cash within the next year. Long-term
assets may include a category known as investments. These are items that management holds
for investment purposes, and they do not intend to “cash in” within the upcoming year. They
might consist of other companies’ stock, notes, or bonds. In some cases, they may represent
specialized forms—money put away for pension funds. The next major category of long-term
assets is fixed assets. Fixed assetsinclude plant, equipment, and land. Generally, these are
valued at their original cost. The value of these assets will decline over time. As an example, you
purchase a new car for $25,000. If you were to sell the same car one, two, or five years later, its
value would be less than the original purchase price. This recognition is known as depreciation,
which is a noncash expense that specifically recognizes that assets decline in value over time.
Accumulated depreciation is a running total of all depreciation on assets. Depreciation is also
found on the income statement. Its presence in that financial statement enables a business to
reduce its taxable income. There are many methods by which you can compute the depreciation
value on fixed assets. These methods can be split into two broad categories: straight-line
depreciation and accelerated depreciation. Straight-line depreciation is fairly easy to illustrate.
Why Work with Us
Top Quality and Well-Researched Papers
Our writers have been trained on how to handle papers placed by our clients. The writer must read and understand before embarking on writing the papers. In case of any issue that needs clarification, writers are encouraged to ask the client or support.
Professional and Experienced Academic Writers
Our team comprises of the best writers and editors. We do thorough vetting during recruitment to make sure that our writers have the knowledge and experience we aspire in the team.
Free Unlimited Revisions
Our aim is to give the client the best outcome. If for some reason you are not satisfied with the wok done, you can ask the paper to be revised or rewritten. This will be done to your satisfaction with no extra charges.
Prompt Delivery and 100% Money-Back-Guarantee
We have writers who work round the clock. This helps in making sure that all our clients’ papers are delivered on time. If we have issues with the deadline, we will ask for extension. If its not possible, the money is fully refunded.
Original & Confidential
Our clients’ confidentiality is highly respected. We can never disclose our clients’ details to third parties. In the same regard, we strive to give our clients 100% original papers. We do not tolerate plagiarism from our writers.
24/7 Customer Support
Clients can reach us any time of the day, and any day of the week. There is a live chat, email or phone numbers to help in ease of communication.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
You should never be worried about your papers even in the middle of the night. Our team will work round the clock to deliver.
Essays
We have an able team that can deliver your work in the shortest time possible. The academic level or the type of work should never be a hindrance. Our highly competent support team is always around (24/7) to give you any assistance you may need.
Admissions
Admission Essays & Business Writing Help
Do you need to be admitted in your dream institution but find it challenging to write an admission essay? Our team is in a position to write the best letter that will guarantee you an admission. We do as well write the best business proposals and reports.
Reviews
Editing Support
Writing can be fun and enjoyable when everything has been done right. Writing is not just enough without proper editing and proofreading. We have a team of editors that ensure everything falls in place, whether its issues to do with grammar or referencing styles.
Reviews
Revision Support
Once the paper has been done and submitted, that is not the end of it. You can always ask for amendment or improvement if you feel something has not been done right. Our team of writers and editors will gladly assist you to your satisfaction. Revision is free of charge.