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It belongs on BOTH.
In the balance sheet, the closing inventory is included in Current Assets.
In the income statement, both opening and closing inventories are taken into account when calculating Cost of Goods Sold (or Cost of Sales).
Cost of Goods Sold is calculated as: Opening inventories + Purchases - Closing inventories
It is worthy to note that in terms of double entry, the closing inventory is accounted for as follows:
Dr Closing inventory (Balance Sheet - Current Assets)
Cr Closing inventory (Income Statement - Cost of Goods Sold)
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What part of the elements of financial statements does inventory bleong to?
Inventory is part of Balance sheet as well as income statement. Inventory is shown as an asset in balance sheet and as an expense when used in income statement.
What financial statement does merchandise inventory at end of period go on?
Closing merchandise inventory belongs on both the income statement and the balance sheet. On the income statement, it is included under Cost of Goods Sold; on the balance sheet it is categorised under Current Assets.
Product costs appear on the income statement in the form of?
Product cost appear on the income statement as cost of goods sold and on the balance sheet as inventory.
Do purchases go on an income statement?
No, purchases do not go on an income statement. The income statement only includes revenues and expenses directly related to the operation of the business. Purchases are recorded on the balance sheet as an increase in inventory or as an expense when the inventory is sold.
Do accounts payable go on an income statement?
No they belong under the liabilities section on a Balance Sheet
Merchandise Inventory is found on the income statement. True or false?
It is true that merchandise Inventory is found on the income statement.
Are the income a balance sheet account?
Income is an income statement account and shown in income statement and not a balance sheet account.
The Cost of Goods Sold account is classified as?
Expense on the income statement. The COI or Merchandise Inventory is reported on the balance sheet as an asset.
How income statement affect balancesheet?
Income statement and balance sheet are both related to each other as transactions effect income statement and balance sheet as well and net income or loss from income statement is also part of balance sheet.
Where does supplies go in the income statement?
Supplies inventory is a part of balance sheet asset side while when those supplies used then those are supplies expenses which shows in income statement in profit and loss section.
Is goodwill balance or income statement?
balance
Are accounts payable on the income statement and balance sheet?
yes accounts are payable on the income statement and balance sheet.
