Origins of the word Inventory

The word inventory was first recorded in 1601. The french term inventaire, or "detailed list of goods," dates back to 1415. inventory

Origins of the word Inventory

The word inventory was first recorded in 1601. The french term inventaire, or "detailed list of goods," dates back to 1415. inventory

Inventory

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about business inventory. For other uses, see Inventory (disambiguation).
"Overstock" redirects here. For the online retailer, see Overstock.com.
Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. It is also used for a list of the contents of a household and for a list for testamentary purposes of the possessions of someone who has died. In accounting inventory is considered an asset.
Contents[hide]
1 Origins of the word Inventory
2 Business inventory
2.1 The reasons for keeping stock
2.2 Special terms used in dealing with inventory
2.3 Typology
2.4 Inventory examples
2.4.1 Manufacturing
2.4.2 Logistics or distribution
2.5 High level inventory management
2.6 Accounting perspectives
2.6.1 The basis of Inventory accounting
2.6.2 Accounting for Inventory
2.6.3 Financial accounting
3 The role of a cost accountant on the 21st-century in a manufacturing organization
3.1 FIFO vs. LIFO accounting
3.2 Standard cost accounting
3.3 Theory of Constraints cost accounting
4 National accounts
5 Distressed inventory
6 Inventory credit
7 See also
8 References
9 Further reading
10 External links

Inventory

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about business inventory. For other uses, see Inventory (disambiguation).
"Overstock" redirects here. For the online retailer, see Overstock.com.
Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. It is also used for a list of the contents of a household and for a list for testamentary purposes of the possessions of someone who has died. In accounting inventory is considered an asset.
Contents[hide]
1 Origins of the word Inventory
2 Business inventory
2.1 The reasons for keeping stock
2.2 Special terms used in dealing with inventory
2.3 Typology
2.4 Inventory examples
2.4.1 Manufacturing
2.4.2 Logistics or distribution
2.5 High level inventory management
2.6 Accounting perspectives
2.6.1 The basis of Inventory accounting
2.6.2 Accounting for Inventory
2.6.3 Financial accounting
3 The role of a cost accountant on the 21st-century in a manufacturing organization
3.1 FIFO vs. LIFO accounting
3.2 Standard cost accounting
3.3 Theory of Constraints cost accounting
4 National accounts
5 Distressed inventory
6 Inventory credit
7 See also
8 References
9 Further reading
10 External links

Payments

"Cash and cash equivalents", when used in the context of payments and payments transactions refer to currency, coins, money orders, paper checks, and stored value products such as gift certificates and gift cards.
If in adjustment of cash flow it is written that investment is short term you should not consider that investment as a part of cash and cash equivalent,

This economics or finance-related article is a stub. You can help Wikipedia by expanding it.

This accounting-related article is a stub. You can help Wikipedia by expanding it.
Retrieved from "http://en.wikipedia.org/wiki/Cash_and_cash_equivalents"

Cash and cash equivalents

Cash and cash equivalents are the most liquid assets found within the asset portion of a company's balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper. Cash equivalents are distinguished from other investments through their short-term existence; they mature within 3 months whereas short-term investments are 12 months or less, and long-term investments are any investments that mature in excess of 12 months. Another important condition a cash equivalent needs to satisfy is that the investment should have insignificant risk of change in value. Example: an investment in shares cannot be considered a cash equivalent, but preference shares acquired shortly before their specified redemption date can be.

Cash and cash equivalents

Cash and cash equivalents are the most liquid assets found within the asset portion of a company's balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper. Cash equivalents are distinguished from other investments through their short-term existence; they mature within 3 months whereas short-term investments are 12 months or less, and long-term investments are any investments that mature in excess of 12 months. Another important condition a cash equivalent needs to satisfy is that the investment should have insignificant risk of change in value. Example: an investment in shares cannot be considered a cash equivalent, but preference shares acquired shortly before their specified redemption date can be.

Assets

Current assets
Cash and cash equivalents
Inventories
Accounts receivable
Prepaid expenses
Long-term assets
Property, plant and equipment
investment property, such as real estate held for investment purposes
Intangible assets
Financial assets (excluding investments accounted for using the equity method, accounts receivables, and cash and cash equivalents)
Investments accounted for using the equity method
Biological assets, which are living plants or animals. Bearer biological assets are plants or animals which bear agricultural produce for harvest, such as apple trees grown to produce apples and sheep raised to produce wool.[17]

Corporate balance sheet structure

Guidelines for corporate balance sheets are given by the International Accounting Standards Committee and numerous country-specific organizations.
Balance sheet account names and usage depend on the organization's country and the type of organization. Government organizations do not generally follow standards established for individuals or businesses.[11][dead link][12][13][dead link][14][15]
If applicable to the business, summary values for the following items should be included on the balance sheet:[16]

US Small business balance sheet

A small business balance sheet lists current assets such as cash, accounts receivable, and inventory, fixed assets such as land, buildings, and equipment, intangible assets such as patents, and liabilities such as accounts payable, accrued expenses, and long-term debt. Contingent liabilities such as warranties are noted in the footnotes to the balance sheet. The small business's equity is the difference between total assets and total liabilities

US Small business balance sheet

A small business balance sheet lists current assets such as cash, accounts receivable, and inventory, fixed assets such as land, buildings, and equipment, intangible assets such as patents, and liabilities such as accounts payable, accrued expenses, and long-term debt. Contingent liabilities such as warranties are noted in the footnotes to the balance sheet. The small business's equity is the difference between total assets and total liabilities

Personal balance sheet

A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due, or overdue, long-term liabilities such as mortgage and other loan debt. Securities and real estate values are listed at market value rather than at historical cost or cost basis. Personal net worth is the difference between an individual's total assets and total liabilities

Personal balance sheet

A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due, or overdue, long-term liabilities such as mortgage and other loan debt. Securities and real estate values are listed at market value rather than at historical cost or cost basis. Personal net worth is the difference between an individual's total assets and total liabilities

Types of balance sheets

A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. Individuals and small businesses tend to have simple balance sheets.[3][dead link] Larger businesses tend to have more complex balance sheets, and these are presented in the organization's annual report.[4] Large businesses also may prepare balance sheets for segments of their businesses.[5] A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison.[6][7][dead link]

Types of balance sheets

A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. Individuals and small businesses tend to have simple balance sheets.[3][dead link] Larger businesses tend to have more complex balance sheets, and these are presented in the organization's annual report.[4] Large businesses also may prepare balance sheets for segments of their businesses.[5] A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison.[6][7][dead link]

Balance sheet

In financial accounting, a balance sheet or statement of financial position is a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company's financial condition.[1] Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time.
A company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth of the company and according to the accounting equation, net worth must equal assets minus liabilities.[2]
Another way to look at the same equation is that assets equals liabilities plus owner's equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing."
Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system.
A business operating entirely in cash can measure its profits by withdrawing the entire bank balance at the end of the period, plus any cash in hand. However, many businesses are not paid immediately; they build up inventories of goods and they acquire buildings and equipment. In other words: businesses have assets and so they can not, even if they want to, immediately turn these into cash at the end of each period. Often, these businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period. In other words businesses also have liabilities.
Contents[hide]
1 Types of balance sheets
1.1 Personal balance sheet
1.2 US Small business balance sheet
2 Corporate balance sheet structure
2.1 Assets
2.2 Liabilities
2.3 Equity
3 Sample balance sheet structure
4 See also
5 References
6 External links

Balance sheet

In financial accounting, a balance sheet or statement of financial position is a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company's financial condition.[1] Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time.
A company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth of the company and according to the accounting equation, net worth must equal assets minus liabilities.[2]
Another way to look at the same equation is that assets equals liabilities plus owner's equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing."
Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system.
A business operating entirely in cash can measure its profits by withdrawing the entire bank balance at the end of the period, plus any cash in hand. However, many businesses are not paid immediately; they build up inventories of goods and they acquire buildings and equipment. In other words: businesses have assets and so they can not, even if they want to, immediately turn these into cash at the end of each period. Often, these businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period. In other words businesses also have liabilities.
Contents[hide]
1 Types of balance sheets
1.1 Personal balance sheet
1.2 US Small business balance sheet
2 Corporate balance sheet structure
2.1 Assets
2.2 Liabilities
2.3 Equity
3 Sample balance sheet structure
4 See also
5 References
6 External links

Intangible assets

Main article: Intangible asset
Intangible assets lack physical substance and usually are very hard to evaluate. They include patents, copyrights, franchises, goodwill, trademarks, trade names, etc. These assets are (according to US GAAP) amortized to expense over 5 to 40 years with the exception of goodwill.
Websites are treated differently in different countries and may fall under either tangible or intangible assets.

Intangible assets

Main article: Intangible asset
Intangible assets lack physical substance and usually are very hard to evaluate. They include patents, copyrights, franchises, goodwill, trademarks, trade names, etc. These assets are (according to US GAAP) amortized to expense over 5 to 40 years with the exception of goodwill.
Websites are treated differently in different countries and may fall under either tangible or intangible assets.

Fixed assets

Main article: Fixed asset
Also referred to as PPE (property, plant, and equipment), these are purchased for continued and long-term use in earning profit in a business. This group includes land, buildings, machinery, furniture, tools, and certain wasting resources e.g., timberland and minerals. They are written off against profits over their anticipated life by charging depreciation expenses (with exception of land). Accumulated depreciation is shown in the face of the balance sheet or in the notes.
These are also called capital assets in management accounting