Opening inventory

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
January 9, 2021 at 5:18 am #605310
applessauce
Member
- Topics: 85
- Replies: 65
Sir in the study text opening inventory is considered as an expense in the income statement

I was wondering how this is possible since closing inventory is not recorded as income

I thought that the transactions involving inventory is only considered in cost of sales
January 9, 2021 at 10:20 am #605351
John Moffat
Keymaster
- Topics: 57
- Replies: 54857
It was an asset at the end of the previous year. It is an expense this year because it was sold this year.

This is all explained in my free lectures on inventory.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘Opening inventory’ is closed to new replies.