inventory accounting

The accounting records and systems used for the ordering, receipt, issuing, and valuation of materials bought by an organization for stock. It includes the recording of the entries on bin cards and in the stock ledger as well as the procedures adopted to carry out an effective stocktaking

Accounting dictionary. 2014.

Look at other dictionaries:

  • Inventory Accounting — The body of accounting that deals with valuing and accounting for changes in inventoried assets. Changes in value can occur for a number of reasons including depreciation, deterioration, obsolescence, change in customer taste, increased demand,… …   Investment dictionary

  • inventory accounting — noun accounting that controls and evaluates inventory • Hypernyms: ↑accountancy, ↑accounting • Hyponyms: ↑first in first out, ↑FIFO, ↑last in first out, ↑LIFO …   Useful english dictionary

  • Inventory — means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English.[1] In the USA and Canada the term has developed from a… …   Wikipedia

  • inventory — In the USA, the equivalent of the UK stock, i.e. the products or supplies of an organization on hand or in transit at any time. For a manufacturing company the types of inventory are raw materials, work in progress, and finished goods. An… …   Accounting dictionary

  • inventory valuation — stock valuation The valuation of stocks of raw material, work in progress, and finished goods. According to Statement of Standard Accounting Practice 9, stocks should be valued at the lower of cost or net realizable value and the costs incurred… …   Accounting dictionary

  • inventory turnover — stock turnover A ratio that measures the number of times items of stock are used annually. To obtain an accurate measure of stock turnover the following formula is used for each commodity: number of units used per annum/number of units in stock.… …   Accounting dictionary

  • accounting ratio — financial ratio A ratio calculated from two or more figures taken from the financial statements of a company in order to provide an indication of the financial performance and position of that company. Ratios may be expressed as a percentage (e.g …   Accounting dictionary

  • Inventory valuation — INVENTORIES AND FINANCIAL STATEMENTS Inventories are usually the largest current asset of a business, and proper measurement of them is necessary to assure accurate financial statements. If inventory is not properly measured, expenses and… …   Wikipedia

  • inventory — the value of all the stock of physical items that a business uses in its production process or has for sale in the ordinary course of doing business. Glossary of Business Terms A category of goods defined by Article 9 of the Uniform Commercial… …   Financial and business terms

  • Inventory — For companies: Raw materials, items available for sale or in the process of being made ready for sale. They can be individually valued by several different means, including cost or current market value, and collectively by FIFO, LIFO or other… …   Financial and business terms

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