Inventories affect

Name: Inventories affect
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Question

Inventories affect

Quizplus · Accepted Answer

Inventories affect both the balance sheet and income statement. On the balance sheet, inventories are reported as current assets, while on the income statement, the cost of goods sold (which includes the cost of the inventory sold during the period) is subtracted from revenue to determine gross profit. Changes in inventory levels can also impact net income through the use of different inventory costing methods, such as FIFO or LIFO.

Inventories Affect