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
A prevent of huge m = 10 kg is drawn by a power F = 100 N at a position q = 30o with the horizontally along a sleek horizontally exterior. What is the speed of the block? (g = 10 m

Semiannual coupon = 10%*$100/2 = $5 Since it is one-year semiannual bond, it pays two coupons, one at six months from now and the other at maturity when the bank account will be

what are different method of classifying overhead? indicate the advantag

X 420 610 625 500 400 550 650 480 565 Y 2.80 3.60 3.75 3.00 2.50 2.70 3.50 3.90 2.0 2.95 3.30 Calculate te covarience anf the correlatio coeficient. Comment on the relationship be

Study A                                      Study B                       Study C x 2 = 1.683                    F = 7.357                    r = .83 df = 4

Q. Example of inference? Ans. Thirty students from a college were surveyed and classified according to two variables: (1) gender (M/F) and (2) major (liberal arts, busines

CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can also be reconfigured to cater for 100 people. The Seasons

1. What type of correlation coefficient would you use to examine the relationship between the following variables? Explain why you have selected the correlation coefficients. A.

A, Suppose a CD player player tries to detect whether its partner is C player instead of a DD player by looking for external signals that are at least as typical for DD players tha

. From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) margi