– Current assets: valuation of inventory, bad debts and bank reconciliations
Introduction In this chapter we look at issues connected with current assets on the balance sheet. As you know, the three main categories of current asset are inventory,
8.1 Introduction 8.2 Inventory 8.3 Receivables 8.4 Bank
After carefully reading the text and completing the tasks and activities provided in this chapter you should have a better knowledge and understanding of: ● the main methods of inventory valuation and how they are applied ● adjustments needed when receivables will certainly never be paid, and
when there is merely doubt whether they will ever be paid ● the purposes and importance of the bank reconciliation process ● how to prepare a very simple bank reconciliation statement.