Why is an increase in inventory shown as a negative amount?, Basic Statistics

Why is an increase in inventory shown as a negative amount?

A rise in stock indicates that a company has purchased more goods than it has sold. Increasing stock requires a money output. Cash outflows have a bad impact on the business's money stability.Negative volumes on the declaration of money moves can be interpreted to mean 1) a money output, 2) that money was used, or 3) that it was unfavorable for the business's money stability. In other words, you can think of adverse volumes as having a bad impact on the business's money stability.Hence, the quantity of the improve in stock is proven as a bad quantity on the declaration of money moves. Had stock decreased, the quantity of the decrease in stock would be proven as a positive quantity on the declaration of money moves.

Expertsmind.com offers unique accounting assignment help

Posted Date: 3/31/2012 3:38:27 AM | Location : United States







Related Discussions:- Why is an increase in inventory shown as a negative amount?, Assignment Help, Ask Question on Why is an increase in inventory shown as a negative amount?, Get Answer, Expert's Help, Why is an increase in inventory shown as a negative amount? Discussions

Write discussion on Why is an increase in inventory shown as a negative amount?
Your posts are moderated
Related Questions
If an exact answer isn''t possible, I really just need a guide. The company we are using is GameStop Corp, listed as GME on the NYSE. Using the supplied information and referring

How important do you think knowledge transfer and training will be to help in transitioning from GAAP to IFRS? Manager 1: Knowledge transfer is going to be extremely importan

Mike sells on the average 15 newspapers per week (Monday – Friday). Find the probability that 2.1 In a given week he will sell all the newspapers

opened a business each contributing %60,000 cash to the company and receiving a capital stock for their investment


at what p-value do we reject the null hypothesis for the Dublin-Watson test

Data Analysis: A qualitative survey was conducted in order to understand the impact of international accounting standards. To start with, a secondary research was done to unders

To history income and expenditures/expenses when they connect with the identification requirements of the finance form engaged regardless of when the money action happens.

Manchester Custom Fabricating Company uses a job order system. At the beginning of May, Manchester had two jobs in process, Job #22 (DM = $600 and DL = $780), and Job #23 (DM = $75

characteristics of statistics and any two application of statistics