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Plus de VCE Accounting - Michael Allison (20)
9.1 What is inventory (stock)?
- 2. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
Inventory is another name for stock (or goods)
9.1 WHAT IS INVENTORY (STOCK)?
- 3. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
The things businesses buy can be grouped into two groups:
Inventory (stock) – goods which are bought with the intention of reselling
them to earn revenue
Non-Current Assets – items which are bought to be used within the
business for longer than 12 months
9.1 WHAT IS INVENTORY (STOCK)?
- 4. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
Example:
Inventory (stock) – goods which are bought with the intention of reselling
them to earn revenue
Non-Current Assets – items which are bought to be used within the business
for longer than 12 months
9.1 WHAT IS INVENTORY (STOCK)?
- 5. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
So the inventory (stock) on one business can be the asset of
another (and vice versa)
Inventory (stock) Non-Current Asset
Non-Current Asset Inventory (stock)
9.1 WHAT IS INVENTORY (STOCK)?
- 6. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
TASK
In-class Homework
SQ1 X