Will inventory be in negative when the closing stock is higher than the opening stock and decrease will be in positive?
3 Answer(s)
Binny
You are right. Increase in inventory will be subtracted from the net income.
Feb 13 2013 11:54 AM
Binny
There are sometimes situations like "inventory write-offs" were old dated inventory has to be discarded - in this case also the inventory account on the balance sheet is decreased and the expense account on the income statement is increased.
Feb 13 2013 11:56 AM