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Why is the valuation of inventories important in financial reporting?

This question is related to accounting and financial reporting.

Public Comments

1. Without the value of the inventory, you can't calculate the value of the company. A lot of companies have more value in inventory than in all other assets combined.
2. because Inventory (both finished goods and raw materials) is counted as an asset..in other words it also has a "value" and can be sold if required to raise more capital
3. ask Dabney Coleman in the movie 9-5