Weekly Questions: Inventories

Q1: Do all businesses have inventories? Why or why not?

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Q2: For firms that do have inventories, is understanding how a firm records its inventory transactions and values its inventories important? Why or why not?

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Q3: What is the difference between Revenue and Income? (revision from Week 1)

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Q4: Do revenue and expense accounts of a firm typically include or exclude GST? Why is this the case?

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Q5: Which items in a Balance sheet typically include GST and which typically exclude GST?

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Q6: Describe the two main methods of accounting for inventory transactions (principally purchases and sales of inventory). Which method is the most popular? Why is this the case?

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Q7: On what basis are Inventories valued in the Balance sheet?

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